In a reversal of its decade-long policy, the World Bank is renewing its support for major hydroelectric dams, initiating significant funding for the Rogun Dam in Tajikistan and exploring investments in the Inga 3 project in the DRC. Critics warn of potential social and environmental harms, while proponents argue for the need for renewable energy solutions in developing nations.
In a significant policy shift, the World Bank is resuming its investment in large hydroelectric dams after a decade of restraint. Once the leading financier of major hydro projects in the latter half of the 20th century, the bank retreated from large dam projects due to escalating concerns over their social and environmental repercussions. Yet, the approval of a $6.3 billion investment for the Rogun Dam in Tajikistan signals a renewed commitment to hydroelectric development, despite critics warning of the inherent risks associated with such projects.
The Rogun Dam, once a stalled project since its inception in 1976, is now a focal point for the World Bank’s financing. Upon completion, it will not only be the world’s tallest dam at 1,100 feet but also one of the most expensive. The project is expected to produce significant electricity, but environmentalists caution that the dam’s construction will divert vital water resources from agricultural regions downstream, particularly affecting neighboring countries like Afghanistan and Turkmenistan.
Simultaneously, discussions are underway regarding financing the controversial Inga 3 project in the Democratic Republic of Congo, part of the expansive Grand Inga scheme. Valued at $100 billion, it proposes to generate immense power but raises concerns about ecological disruption and the displacement of communities. The World Bank’s renewed focus on hydropower reflects a strategic maneuver by its current president, Ajay Banga, who may be aiming to demonstrate the bank’s capability in financing large-scale energy projects, despite a history of backlash against such initiatives.
Negotiations have also commenced for a $1.1 billion dam on the Arun River in Nepal, labeled as Upper Arun, which is viewed critically due to Nepal’s existing power overproduction and unstable transmission infrastructure. As the World Bank seeks to engage with multiple hydroelectric projects, experts express concerns that these endeavors may overlook longstanding environmental issues, such as the displacement of communities, which hydropower projects have historically exacerbated.
The World Bank’s trajectory with hydroelectric projects has been notably inconsistent over the past two decades. Historically, it was a strong promoter of large dam projects, but a growing backlash from environmental advocates and social justice proponents led to a sharp retreat in financing such initiatives. Critics emphasize the detrimental effects dams have on ecosystems and local communities. In recent years, the bank has examined the balance between promoting renewable energy and addressing social and environmental impacts, particularly in the context of global climate change.
The World Bank’s shift towards financing large hydroelectric dams highlights a complex interplay between renewable energy initiatives and environmental stewardship. While proponents point to the potential for economic growth and energy production in underdeveloped regions, critics remain concerned about the social and environmental costs associated with such projects. This developing trend prompts ongoing discourse about the sustainability and viability of large hydro projects in the face of emerging renewable energies.
Original Source: e360.yale.edu
