World Watch
By

Celia Hatton /

CBS News/ May 31, 2011, 8:03 AM

China's backing for Ethiopia dam riles activists

Protesters outside the Chinese Embassy in Nairobi

Environmental group 'Friends of Lake Turkhana' (FOLT) protest outside the Chinese Embassy in Nairobi, Kenya on February 20, 2011 against the involvement of Chinese companies in the construction of the Gibe 3 hydroelectric dam along the Omo river in neighboring Ethiopia.

/ Getty

It's a story that truly spans the globe: Activists from all over the world, including San Francisco, are trying to stop the construction of a dam in Ethiopia financed by a Chinese bank.

The Gibe 3 Dam is in the early phases of construction on Ethiopia's powerful Omo River, using $500 million dollars in equipment funded by the Industrial and Commercial Bank of China (ICBC). The hydroelectric dam, one of the largest construction projects in Ethiopia's history, would regulate the flow of water along the Omo River as it courses through Ethiopia and into Kenya's massive Lake Turkhana -- a freshwater oasis in the heart of the desert.

The project has been mired in controversy since it was just a blueprint. The World Bank and the European Investment Bank financed smaller hydroelectric projects on the Omo River, but dropped consideration of the Gibe 3 Dam after viewing the environmental impact report commissioned by the Ethiopian government. Activists say the World Bank and the African Development Bank lost interest in the project after considering its social and ecological implications on the region's fragile ecosystem stretching across Ethiopia and northern Kenya. The European Investment Bank also dropped consideration of the Gibe 3 Dam, although its reasons for doing so are unclear.

A November 2010 hydrology report by the African Development Bank (pdf) (AfDB) noted that the Omo River is responsible for 90 percent of the water leading into Lake Turkhana. A major dam blocking the river would drain most of the lake, depriving 300,000 Kenyans of the water needed for agriculture, cattle herding and fishing. And that's just the first concern: The activists' extended list of fears about the dam seems as long as the Omo River itself.

Any changes to the Omo River's natural flood pattern could affect 70 percent of the "more important" species living around Lake Turkhana, according to the AfDB report. Also, in the long term, independent Ethiopian engineers have questioned the wisdom of building such a large dam in a region with a history of strong earthquakes.

That's not all. The area that will be flooded by the dam is home to low-level farmlands used by 300,000 Ethiopians. Food resources are already so scarce in the drought-hit border region between Kenya and Ethiopia that two of the main ethnic groups living there have resorted to violence in their bid for more land and water. In May, 70 ethnic Turkhana people from Kenya were killed when they attempted to buy food across the border in Ethiopia.

Landlocked Ethiopia is starved for electricity and also hopes to boost its revenue by exporting hydroelectricity. One section of the Kenyan government has already signed a Memorandum of Understanding to buy hydropower from the Gibe 3 dam. In a fax to CBS, the ICBC noted "relevant nations expressed interest in buying electricity from Ethiopia."

However, Friends of Lake Turkhana, an activist group battling the dam, is taking the Kenyan government to court to fight the agreement to buy electricity without conducting a full environmental impact assessment on the dam. Now that the ICBC bank in China is offering financial support for the dam, the Kenyan opponents to the dam are widening their campaign to stop construction of the Gibe 3.

The ICBC Bank has long been silent on its reasons for supporting controversial Gibe 3 Dam, until now. Activists from Kenya and International Rivers flew to Beijing to plea their case to the ICBC, but their meeting requests were ignored. So, I contacted ICBC Bank to ask about the widespread concerns regarding ecological and safety risks of building the GIBE 3 Dam. Days later, the unsigned letter from ICBC faxed to CBS News insisted, "credit and loan for all projects conforms to environmental requirements."

Further, the bank argues that other, smaller hydro projects on the Omo River, Gibe 1 and Gibe 2, were supported by the World Bank, the European Investment Bank and other financial institutions. The fax did not answer CBS News' question as to why the ICBC continues to support the Gibe 3 project when other financial institutions have stepped away.

The ICBC's annual general meeting begins Tuesday in Beijing and Hong Kong.

"Based on the serious findings of the [African Development Bank] hydrological impact report, which has now been published, ICBC should reconsider their funding of the Gibe 3 Dam," Peter Bosshard, Policy Director at International Rivers tells CBS News.

The Chinese government is pressuring the country's state-owned banks to invest in more projects outside of China. As Chinese banks extend their interests into international territory, activists from all over the world will likely find themselves spending more time in Beijing.

© 2011 CBS Interactive Inc. All Rights Reserved.
17 Comments Add a Comment
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justineet says:
SHAMELESS, Malicious LIARS!!!

Peter Boshard and Ceila Hutton of CBS are completely distoring the facts, and the Envioronmental impact and technical study done for Gibe 3 by AFB. Unlike their BODUS, totally DECEITFUL claim, the AFB study concluded Gibe 3 Dam is technically and enviornmentally sound. If this was was the court of Law, these two would be founc GUILTY of MALICIOUS LIE!!!


CBS should be ASAMED for tuning its organization no better than a TABLOID rag!!!


Peter Boshard - MR. Pinnocchio - is probably a paid agent for the Duch Wind Power company which has been planning to build a power plant in Kenya. The building of Gibe 3 Dam is a great threat for the Wind company's plan for it can't compete with Gibe 3 on Price for power sales to customers in Kenya!!
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justineet says:
Who is CBS and Ceila to FOOL???

Hydro dams don't consume water. They just use the water to for turning turbines for power generation. Then the water flows into the the river as usual!!

CBS, STOP INSULTING the inteligence of your customers! That is neither ethical nor smart business!!

CBS - you are damaging your crediblity with this inane post!!
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justineet says:
Peter Bosshard of "International Rivers" is a MALICIOUS Liar!

The AFB hydrological study clearly states Gibe 3 is envioronmentally and technically sound dam!!

Moreover, the World Bank and AFB have also concluded building dams in that part of the river is technically sound as they have already assisted for the building of other dams - 2 dams to be exact - which are now operational giving power in Ethiopia!!
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justineet says:
The Hoover Dam should be Demolished!!!! According to Ceila!!

According to Ceila, President Franklin Rossevelt committed great injustice against the American people for building the Hoover Dam for the dam had some effect on the Enviornment. Thus it MUST be demolished right now!!!
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justineet says:
CBS and Ceila are trying to STOP development in 3rd world countries!!


I believe that is RACIST!!!
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justineet says:
LIES, LIES and LIES!!!

Ms Ceila is misinforming the public. All independent environmental studies concluded Gibe 3 Dam is environmentally very sound. And the earthquake claim is totally bogus -- there has been other dams built with the help of the World Bank and the African bank in the same region after environmental and hydrological studies concluded it is a good place to build dams!!!
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justineet says:
Who said the dam is not good for the enviornme
nt -- any one who has studied the dam, this dam is one of the most envioronmentally freindly dams ever to built. This dam like other Hydro dams doesn't consume water, unlike Ceila falsely, UNETHICALLY claims. Ms Ceila is just repeating the LIES of so called Enviornmentalist who are probably paid agents of other interest groups like the Dutch Wind industry, which is trying to build a power plant in Kenya - a power plant which will not be financially competetive with the Gibe 3 dam, as the power sold by the Gibe 3 dam will be much cheaper than the wind power!!
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justineet says:
Irresponsible, STUPID, RACIST article by CBS and Ceila!!

Who is Ceila and CBS trying to fool?? Dams don't consume water! A 4th grader knows that. They use the water and the water goes through as usual!

America has 100s of Hydroelectric dams but Ms. Ceila don't want Ethiopia to have few dams because according to her it affects the prestine Enviornment. Ms Ceila don't give a DAM about Ethiopians or Africans! She wants tthem to remain poor and destitute for lack of power!!
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Addis4ever says:
This is hypocrisy at its best. Ethiopia has God given right to utilize its natural resources just as any country and get out of darkness. If this means resettling 300,000 citizens for the sake of 80 million, it is well worth it! Everybody knows western Countries don't give a damn about Africa as a whole let alone 300,000 Africans. They just want Africans to remain in darkness forever so that they would continue to drain its resources for centuries to come. Just Imagine USA or Europe without electricity for one week? Did they manage to light every single corner of their respective countries without polluting the environment or resettling citizens? NO! They even wiped out indigenous people from Australia, NewZealand,North/South America etc, displaced millions of Africans and Asians from their natural environments to build their nations so please spare us the lecture!!!

Ethiopians can't utilize Nile river because it affects Egypt, can't use Omo river because it affects Kenyans. What the hell! We thank China for their continued support on this. I strongly believe Ethiopians MUST rally behind these projects, buy Ethio government bonds, organize pro Gibe III and Renaissance dam projects rallies everywhere. We can't remain in darkness and continue to starve while others enjoy Ethiopia's resources. This is neither fair nor right.
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Bekele1 says:
Okay I can't believe what is going on here&I am sure Hydroelectric is the best way to generate energy than nuclear power or coal. May be western investors should consider investing on hydroelectric power in Ethiopia. Building the Dam has nothing to do with the environment at all. The article mentioned spices&how give a f@#$ about worms while people are starving due to lack of energy&Ethiopia has every right to use its resources to feed it children. Thanks to the Government of china who considers the support&I am Glad that Ethiopian Citizens are ready to build the Dam unlike the confusion by of IMF and world bank rapists.
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