Chinese dam builders rush to Latin America
China's growing involvement in hydropower development in the region boosts clout but also leads to allegations of poor corporate responsibility
There has been a huge increase in Chinese dam projects in South America, which has expanded China's geopolitical clout in the continent but also drawn allegations of poor corporate social responsibility.
"China's involvement in hydropower development in Latin America has grown significantly since 2010. It's fair to say that Chinese dam-building companies are targeting the Latin American market," said Grace Mang, China programme director at International Rivers, a green non-governmental organisation in the United States.
Before 2010, International Rivers was aware of only two Chinese hydropower projects in Latin America, both in Belize, Mang said. Now, there are 22, of which three are completed, seven are under construction and 12 are on the drawing board.
The three completed Chinese dams are in Belize and Ecuador with a total installed capacity of 47 megawatts and costing more than US$30 million.
The seven being built are in Costa Rica, Ecuador and Honduras, with a total installed capacity of 2,087 MW and costing more than US$2.53 billion. Among them is the US$1.7 billion Coca Codo Sinclair dam being built by Sinohydro, a Shanghai-listed state-owned dam builder, and financed by the Export-Import Bank of China.
The 12 proposed hydropower projects are in Costa Rica, Ecuador, Guyana, Honduras, Peru and Argentina, with a total installed capacity of 5,069 MW. The total budget, which includes funding from Latin American sources, is more than US$12.25 billion, according to International Rivers.