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Chinese state-run hydropower companies fall short on green promises

Some state-run firms failing to keep promises to protect the environment, green group finds

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Ecuador's Coca Codo Sinclair hydropower project is run by China's Sinohydro, which has worked with environmental groups such as International Rivers and The Nature Conservancy since 2009. Photo: Ecuador Ministry of Electricity and Renewable Energy
Ecuador's Coca Codo Sinclair hydropower project is run by China's Sinohydro, which has worked with environmental groups such as International Rivers and The Nature Conservancy since 2009. Photo: Ecuador Ministry of Electricity and Renewable Energy
China's state-owned dam builders are failing to keep their promises to protect the planet when developing hydropower projects abroad - increasing the threat of environmental and social problems, according to a new study by green group International Rivers.

Some experts believe such business practices - if not improved - could harm Chinese companies' hopes of securing contracts for infrastructure projects as part of Beijing's ambitious "One Belt, One Road" initiative.

This development strategy includes the Silk Road Economic Belt, linking the nation with Central Asia, Russia and the Baltic states over land, and the building of maritime routes with nations in Southeast Asia and around the Indian Ocean.

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The study looked at seven Chinese power companies involved in overseas dam projects: Sinohydro, Gezhouba Group, Three Gorges Corp, China Huadian Corp, China Huaneng Group, PowerChina Resources, and China Datang Overseas Investment.

Five of the seven received lower scores for project performance than for policy commitment in the overseas dam projects, according to a benchmark developed by the California-based International Rivers, which compares their standard of their work offshore with international best practices.
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"The three companies [PowerChina Resources, Huaneng and Datang] who ranked last in project performance have significant gaps between project performance and policy commitments," said Stephanie Jensen-Cormier, the green group's China programme director.

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