[vc_row full_width=”stretch_row” equal_height=”yes” cspt-responsive-css=”13014940|colbreak_no|||||||||colbreak_yes|||||||||colbreak_no||||||||||colbreak_no|||||||||” el_class=”header-title” css=”.vc_custom_1615584142705{margin-bottom: 40px !important;}”][vc_column cspt-extended-column=”left” width=”1\/2″ cspt-responsive-css=”69549645|colbreak_no|||||||||colbreak_no|||||150||150||colbreak_no||||||||||colbreak_no|||||||||” css=”.vc_custom_1615583979260{padding-top: 300px !important;padding-right: 50px !important;padding-bottom: 30px !important;background-color: #5c86c0 !important;}”][vc_row_inner equal_height=”yes” content_placement=”middle”][vc_column_inner width=”1\/4″][vc_single_image image=”11402″ img_size=”full” css=”.vc_custom_1618860616664{margin-bottom: 0px !important;}”][\/vc_column_inner][vc_column_inner width=”3\/4″][vc_custom_heading text=”The Tatay River Hydropower Dam” font_container=”tag:h1|font_size:40px|text_align:left|color:%23ffffff|line_height:45px” use_theme_fonts=”yes” css=”.vc_custom_1618860605468{margin-bottom: 0px !important;}”][\/vc_column_inner][\/vc_row_inner][\/vc_column][vc_column cspt-bg-image-color-order=”image-over-color” cspt-extended-column=”right” width=”1\/2″ cspt-responsive-css=”91835201|colbreak_no|||||||||colbreak_no||||||||15|colbreak_no||||||||||colbreak_no|||||||||” css=”.vc_custom_1615583501511{margin-top: 0px !important;margin-bottom: 0px !important;padding-top: 40px !important;padding-right: 30px !important;padding-bottom: 40px !important;padding-left: 30px !important;background-image: url(http:\/\/103.18.247.248\/~sample\/bri_monitor\/wp-content\/uploads\/2021\/03\/East-Coast-Railway-Link-Case-Study-image.jpg?id=11380) !important;background-position: center !important;background-repeat: no-repeat !important;background-size: cover !important;}”][\/vc_column][\/vc_row][vc_row][vc_column][vc_tta_tabs spacing=”20″ active_section=”1″ el_class=”bri-tabbing”][vc_tta_section title=”I. Project Summary” tab_id=”1614655868545-c561da9a-c081″][vc_column_text]<\/p>\n
The Tatay River Hydropower Dam project is the sixth hydropower dam financed by China in Cambodia. The 246-megawatt Tatay River HydroPower dam is located in MoBang District, Koh Kong Province in western Cambodia. The project is owned by Cambodian Tatay Hydropower Limited and began full operation in December 2015. When the Build-Operate-Transfer (BOT) agreement for the project was signed in 2008, it was projected to begin construction in 2009 and to commence commercial operation by 2013 with a projected cost of $505 million. Upon the project\u2019s inauguration, it was the largest investment project by a Chinese state enterprise in Cambodia to date.<\/p>\n
Although the Tatay project was conceived of before BRI\u2019s official launch in 2013, sufficient data exists to conceptualize it as a BRI project. Upon its inauguration, the Tatay project was the sixth hydropower dam financed by China in Cambodia, closely following on from the completion of the 388-megawatt Russei Chrum dam in the same province. By 2016, China had invested over $1.6 billion in Cambodian hydropower, with a net capacity of 928-megawatts. As of 2021, all hydropower projects in Cambodia have been financed by China, although several additional dam projects, currently under MoU study, are slated to be financed by other foreign partners, such as Korea, Russia, Vietnam and Thailand.<\/p>\n
The Tatay project was the first time the China National Heavy Machinery Corporation (CHMC) invested in a foreign BOT project. Construction of the dam began in March 2010 under a Build-Operate-Transfer (BOT) agreement, with 5 years designated for construction and 37 for operation. Since operationalization, the dam\u2019s three generators have an annual production capacity of 849,000,000 kWh that, in 2020, represented almost 24% of Cambodia\u2019s total hydropower generation (3,493 GWh) and 10% of Cambodia\u2019s total domestic electricity production (8,513 GWh). The Cambodian government applauded the project for the local jobs and economic advancement it provided in addition to flood protection, energy security, affordability and reliability.<\/p>\n
The project was financed by a $540 million loan from the China Import Export (Exim) Bank. Exim Bank is the primary lender in the context of the Belt and Road Initiative (BRI), its decisions on lending are guided by the Ministry of Commerce. Under the agreement with the Cambodian government, Cambodian Tatay Hydropower wholly owns the Stung Tatay Hydropower Dam for a period of 42 years under a Build-Operate-Transfer (BOT) agreement, subsequent to which ownership will be transferred to the Cambodian government.<\/p>\n
[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”II. Project Structure” tab_id=”1614655868558-673461d2-624a”][vc_column_text]<\/p>\n
CHMC created the joint venture Beijing Sanlian International Investment Co., Ltd. along with two other Chinese companies: the Northwest Hydroelectric Investigation Design and Research Institute of China Hydropower Engineering Consulting Group Co (CHECC), and CHINT Company Limited. CHMC is the majority shareholder at approximately 90%, while CHINT Group announced its investment in the Tatay Hydropower Project at 10% of the project\u2019s costs and CHECC is another minority shareholder. CHMC is a subsidiary of SINOMACH while CHECC is a subsidiary of China Electric Power Construction Group Co., Ltd. (CEPCA). Cambodia Tatay Hydropower Ltd. was subsequently established as sole recipient of Beijing Sanlian International Investment Co., Ltd. investments. Cambodia Tatay Hydropower Ltd. contracted China Gezhouba Group Corporation–in the firm\u2019s own words, a \u201ccore member,\u201d of the state-owned enterprise China Energy Engineering Group–to perform the bulk of the construction.<\/p>\n
[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”III. Issues” tab_id=”1618452537450-6e206883-c36f”][vc_column_text]<\/p>\n
The official environmental impact assessment (EIA) for the Tatay project is not readily available to the public and all information here is summarized from a draft EIA published on Open Development Cambodia in 2010. The draft describes the project will flood 2949 hectares permanently and 182 hectares temporarily. The flooding would affect the wildlife as well as the livelihood of locals who depend on the forest and its resources to make a living. The EIA further mentioned concerns of diminished air and water quality both during construction and some years after project completion.<\/p>\n
In addition to the environmental impacts of the dam, there are further externalities impacting the supporting infrastructure. Environmental NGOs raised the question as to whether such construction would catalyze similar patterns previously observed, i.e., the establishment of roads to support development projects that open up easy access to forests for illegal loggers and poachers, furthering the negative environmental impacts of the Tatay project.<\/p>\n
There are also difficulties with transparency as there is still no public disclosure of the procurement bidding, the feasibility study, the budget, or the EIA. The relative absence of transparency at the time of project planning and operationalization continues to present challenges for stakeholders and development partners in determining the impacts of the project. It is unclear whether the project budget has changed from earlier projections or whether those projections were simply erroneous when initially prepared, but discrepancies and inconsistencies certainly do exist across the budgetary documents. Confusion also exists around the project timeline as it is unclear whether the project experienced delays or took longer than expected and the implications thereof on the overall project budget.<\/p>\n
[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”IV. Transparency Assessment” tab_id=”1614655896696-2d7fad11-0659″][vc_column_text]<\/p>\n