The shares of Hunan Wuxin, an equipment supplier for tunnels, jumped 30%. Geokang Technologies, which produces smart monitoring systems, also registered big gains. Cement producers such as Xizang Tianlu Co and explosives company Tibet GaoZheng Explosive Co also reached their daily limits of trading, following the announcement of construction on the world’s largest hydropower dam.
Experts termed the project as a “bond-like” investment with long-term worth. Citi analysts calculated the dam would add up to 120 billion yuan ($16.7 billion) to China’s GDP each year during its 10-year construction period. The real impact may be higher.
Environmental and Geopolitical Concerns Around the World’s Largest Hydropower Dam
In spite of economic optimism, the project also drew numerous issues. Environmentalists cautioned that it threatened to harm the Tibetan Plateau’s fragile ecosystem. India and Bangladesh were also concerned that there could be downstream effects on water flow, since the Yarlung Zangbo river eventually forms the Brahmaputra River further south.
Premier Li acknowledged the risks. He called the dam a “project of the century” and emphasized the importance of strong ecological safeguards during construction.
Pushing Toward Renewable Energy Leadership
The world’s biggest hydropower dam will be spearheaded by China Yajiang Group, a new state-owned entity. The authorities have not provided information regarding displacement and employment opportunities as yet. Nevertheless, a similar project such as the Three Gorges Dam created close to a million jobs while displacing the same number.
Operations are expected to commence in the 2030s, according to the government. The dam will be a central component of China’s long-term clean energy strategy.
