Myitsone Project benefits both China and Myanmar

Q: Some reports pointed out that the project will only bring economic benefits for China. What's your comment on that?

A: This viewpoint is extremely wrong. People who hold such a wrong viewpoint either don't understand the situation or have ulterior motives. Regarding infrastructure, it is an international practice to implement BOT mode. According to our BOT agreement, upon completion of the upstream-Ayeyawady hydropower project, CPI will be responsible for operation for 50 years, after 50 years the project will be transferred to the Myanmar government free of charge.

Either in terms of direct economic benefit or indirect profit, the upstream-Ayeyawady hydropower project will significantly boost the fast development of economy and society in Myanmar. In terms of direct economic benefit, when the several hydropower stations in upstream-Ayeyawady basin, including Myitsone Hydropower Station, are completed, Myanmar government will gain economic benefits of USD54 billion via taxation, free electricity and share dividends, far more than CPI's return on investment during our operation period. In particular, as the design life of the project is over 100 years, when we transfer it after 50-year operation, the Myanmar government will have a fixed assets increase worth tens of billions US dollars, in addition to hundreds of billions US dollars of direct economic benefits. Of course, the premise is that US dollar is not depreciated.

In terms of indirect profits, first of all, the construction and operation of high-grade and large-capacity power station will rapidly improve the power equipment in Myanmar and cultivate a large group of professionals in power construction, operation and management. As a result, Myanmar's electric industry will realize leapfrog development, providing strong power ensurance for its economic and social development. Second, when Myitsone Hydropower Station is completed, it will effectively control and reduce the flood peak, raise the anti-flooding standard in downstream area, and reduce life and property losses caused by downstream flood on people living on both banks. The anti-flood capability of Myitkina will be enhanced from once in 5 years to once in 20 years. Third, 750km road and a large number of hydrological, meteorological and seismic observation stations will be built for upstream-Ayeyawady project accordingly. Those infrastructures will definitely create opportunities for the local area to attract business and capital and improve people's livelihood. Fourth, during the construction peak, more than 40,000 workers will be needed, considerably increasing local job opportunities. At present, there are altogether 2000 Myanmar workers on the construction site of upstream-Ayeyawady project, including 1400 Myanmar workers on the Myitsone Hydropower Project site. By directly participating in the construction of upstream-Ayeyawady project or providing relevant services for construction personnel, local residents have considerably improved their own economic and living conditions.

Q: Some people worry that construction of the dam will lead to such major hazards as flood and earthquake. Is there sufficient guarantee for dam safety?

A: As far as I know, in the more than 100-year history of hydropower development, no flood or destructive earthquake has ever been caused by dam construction. CPI is a responsible super-large energy enterprise with 18GW operating hydropower capacity in China. We are able to ensure the safety of dam construction. During the design and construction of Myitsone Hydropower Station, we involved topnotch experts and teams in China, who have designed more than 200 hydropower stations, including Shuibuya Hydropower Station with the world's highest concrete face rockfill dam and Malaysia's Bakun Hydropower Station. Repeated proving of the seismic safety evaluation of Myitsone proved the absolute safety and reliability of the project engineering scheme. The Myanmar government also organized famous consulting organizations and experts from Switzerland and Japan to prove that over and over. Both parties agreed that there was no seismic safety issue for Myitsone Hydropower Station.

The seismic design of the dam in Myitsone Hydropower Station follows the standard of fortification intensity 9, which is higher than fortification intensity 7 of Zipingbu Hydropower Station that has withstood the Wenchuan earthquake in Sichuan. To further fortify the overall seismic performance of the dam, we applied reinforced concrete grating to the top of downstream dam slope and implemented other seismic fortifying measures. In case of emergency, the surface and middle discharge orifices on the spillway can be used to rapidly lower the reservoir water level and ensure dam and downstream safety. We will build 25 digital remote control seismic monitoring stations in the reservoir area and arrange more than 700 safety monitoring instruments all over the dam in accordance with the safety monitoring standard applied to the world's highest concrete face rockfill dam so as to keep a close eye on the dam's working conditions during operation.

The anti-flood standard of the Myitsone dam is designed as once in 1000 years and ratified with once in 10000 years to ensure safe operation.