The World Bank has reversed a ten-year trend of avoiding financing large hydropower projects, now backing major initiatives like the Rogun Dam in Tajikistan and the proposed Inga 3 Dam in the Democratic Republic of Congo. This shift reflects a renewed focus on large-scale energy projects amidst discourse on environmental and social concerns that have historically plagued hydroelectric dam initiatives. With widespread implications for local environments and communities, the bank’s decisions garner support and criticism from various stakeholders.
In a significant change of direction, the World Bank has recently re-entered the realm of large hydroelectric dams, after a prolonged period of hesitation. Historically, the World Bank was a primary advocate for large hydro projects but retreated in the face of growing criticisms regarding the social and environmental implications associated with these undertakings. Over the past decade, the institution had approved very few large projects due to concerns from activists and experts. However, this dynamic appears to be shifting as the bank has just approved funding for a $6.3 billion initiative to complete the long-stalled Rogun Dam in Tajikistan, which has been a work in progress since 1976 and is projected to become the tallest dam globally.
The Rogun project is part of the World Bank’s broader reengagement with large hydro projects, complemented by discussions regarding the financing of the Inga 3 Dam in the Democratic Republic of Congo. The Grand Inga initiative, aimed at developing the largest dam project in history at an estimated cost of $100 billion, seeks to significantly bolster power output in Africa. These developments signal a marked departure from the cautious stance the bank had taken in relation to hydroelectric projects, which had been curtailed due to environmental risks and significant social costs.
Despite calls for a more cautious and restrained approach concerning hydropower projects, the World Bank has defended its renewed focus on large dams, emphasizing the necessity of hydropower in pursuing clean energy development. Proponents argue that these projects hold the potential for substantial renewable energy generation in areas with limited electricity access. Nevertheless, opponents caution against the long-standing adverse impacts, which include ecological disruption, the displacement of communities, and the financial unpredictability tied to massive infrastructure projects.
In recent statements, World Bank representatives have reiterated their stance, asserting, “There has been no policy change on financing hydropower.” Yet, the introduction of these large-scale projects has sparked fears within environmental advocacy circles that the bank’s endorsement may encourage further development of controversial hydro initiatives. Environmental groups have expressed alarm over the decisions being made regarding Rogun and Inga 3, emphasizing the potential risks involved and calling for a reassessment of the World Bank’s investment strategies.
Concerns regarding the implications of the Rogun Dam, which threatens to displace tens of thousands of people and may adversely affect the hydrology of the region, have been articulated by various stakeholders. It is anticipated that while the dam intends to enhance domestic energy capacity, it risks exacerbating tensions related to water access for downstream users, especially in Afghanistan, Turkmenistan, and Uzbekistan.
The World Bank’s involvement in the financing of large hydroelectric dams has historically been both significant and contentious. From the mid-20th century until the late 1990s, the institution was a major backer of such projects. However, due to increasing scrutiny about the high environmental and social costs—such as ecosystem destruction and community displacement—the bank shifted its policy to prioritize sustainable energy development. This shift included the establishment of the World Commission on Dams, which, despite issuing recommendations for responsible dam construction, led to a withdrawal of support for many projects deemed too risky. With the recent approval of the Rogun Dam, the World Bank’s renewed focus on massive hydro projects reflects an attempt to balance energy needs and environmental concerns amid changing global energy demands.
The World Bank’s renewed endorsement of large hydroelectric dams, illustrated by the recent funding of the Rogun and Inga 3 initiatives, indicates a significant shift in policy that prioritizes large-scale energy projects amidst rising energy demands. While advocates argue for the potential benefits of such projects in generating renewable energy, critics caution against the longstanding social and environmental impacts associated with large dams. This ongoing discourse highlights the complexities and challenges in pursuing sustainable energy solutions on a global scale, drawing attention to the potential repercussions of the bank’s decisions on affected communities and ecosystems.
Original Source: e360.yale.edu
