Three Gorges Dam: New Round of Bidding Opens Amidst Controversy

Contact: Doris Shen
Phone: +1 510 848 1155 ext. 301

The China Three Gorges Project Corporation has just opened a second major round of bidding for four turbine and generating units for the Three Gorges Dam on the Yangtze River. International Rivers Network calls on Western governments and companies to refrain from extending further support for the project as long as its serious resettlement and human rights problems have not been resolved.

On June 10, the China Three Gorges Project Corporation invited bids from Chinese and international companies for a second batch of four turbines and generators for the Three Gorges Project. A first batch of 14 units had been ordered in 1997. The power project will consist of a total of 26 turbines and generators. The deadline for the bidding process is October 15, 2003. Dam construction up to an intermediate level was recently completed, and the reservoir is currently filling to a level of 135 meters by June 15th.

International Rivers Network (IRN) today calls on all governments and companies not to provide further finance and equipment for the flawed and highly destructive Three Gorges Project. In a recent investigative report, IRN documented that the people affected by the project have not been properly compensated and resettled, that compensation funds were routinely diverted into other projects and private pockets, and that opposition against the inadequate resettlement provisions was met by heavy repression. On May 16, 2003, IRN called on the governments that had funded the dam project so far to "refrain from extending further credits and guarantees for the Three Gorges contracts."

With a capacity of 18,200 megawatts, Three Gorges will be the world's largest power project. The Three Gorges reservoir will forcibly displace between 1.2 million and 1.9 million people, and submerge 19 cities and 326 towns. Environmental groups and public health officials also fear that the submergence of numerous mining and industrial sites will turn the reservoir into a pool of toxic waste and will pose a serious public health risk.

Official export credits and guarantees from Germany, Switzerland, Sweden, Canada, France and Brazil funded the first batch of turbine and generator contracts in 1997. Turbine and generator contracts were signed by ABB, Alstom, General Electric, Kvaerner, and Voith-Siemens. Since that time, ABB's power division was acquired by Alstom, and Kvaerner, by GE Hydro. The World Bank, historically the largest funder of dams in developing countries, refrained from the controversial project. The US Export-Import Bank decided not to finance the controversial dam project based on environmental concerns.

IRN's Doris Shen comments: "In 1997, governments justified their support for the Three Gorges Project by asserting that through their involvement, they could improve the project's environmental and human rights standards. These claims have meanwhile turned out to be empty promises. As long as the resettlement and human rights problems of the project remain unresolved, governments and companies should refrain from lending any further support to this project."

Further information:
. Doris Shen, International Rivers Network, doris@irn.org, ph +1 510 848 1155, ext. 301 . "Human Rights Dammed off at Three Gorges" January 2003, IRN
http://www.irn.org/programs/threeg/3gcolor.pdf
. Contact information for Export Credit Agencies
http://www.eca-watch.org/eca/directory.html

ANNEX:

Official bidding document from http://www.chinabidding.com.cn (Restricted to subscribers only)

Bidding No.: TGT-TGP/EM200301I
Closing Date: 2003-10-15
Category: International
Funding Source: Others
Province/City: Hubei

Content:
China Three Gorges Project Corporation
Three Gorges International Tendering Company Ltd.
Invitation for Bids on Hydro-turbine Generating Units and Accessories in Right Bank (or Southern Bank) Power Station under Three Gorges Project (Bidding number: TGT-TGP/EM200301I)

1.China Yangtze Three Gorges Water Conservancy Project (hereinafter called the Project) is a backbone project for harnessing and developing of the Yangtze River with enormous comprehensive benefits of flood control, power generation, navigation, and etc. Twenty-six (26) hydro-turbine generating units, each with a rated capacity of 700MW, are to be installed in this Project, out of which, fourteen (14) units for the left (northern) bank power station were purchased in 1997 and the first batch of units will be put in commercial operation in 2003. The four units, which will be installed in the right bank power station, are going to be purchased through this Invitation For Bids (IFB) by China Three Gorges Project Corporation (hereinafter called CTGPC, Owner) according to the Three Gorges Project construction plan approved by the Government.

2. CTGPC will effect the eligible payment under the contracts to be signed through this bidding by fund financed by the State and its own-raised funds.

3. The scope of bidding and IFB(s): Entrusted by the Owner, Three Gorges International Tendering Company Ltd. (hereinafter called TGT) as the Tenderee invites and welcomes qualified bidders from within or outside P.R. China to submit sealed competitive bids for the following IFB(s) for this Project:
IFB1 -HYDRO-TURBINES AND ACCESSORIES
IFB2 -GENERATORS AND ACCESSORIES
Any qualified bidder shall bid for both IFB1 and IFB2.
The IFB1 bidder shall submit the complete and latest turbine model test report, together with the bid proposal, for this project. The tenderee shall inform the bidder to supply the turbine model for verification test at a Chinese test stand when necessary during bid evaluation.

4. The qualifications and requirements on Bidders: Any Bidder satisfying one of the following requirements can bid independently for both IFB1 and IFB2:
(1)IFB1: Having experience in designing and manufacturing Franchise turbines with a rated output not less than 440 MW and runner's diameter (inlet diameter, throat diameter and outlet diameter) equal to or greater than 6 meters, and such turbines having been in safe operation for at least 3 years.
(2)IFB2: Having experience in designing and manufacturing hydraulic generators with a rated output not less than 450 MVA and thrust load greater than 2400t, and such generators having been in safe operation for at least 3 years.
(3)Being a main Chinese subcontractor, which has received the technology transfer during the manufacture of hydro-turbine generating units in the left bank power station under the Three Gorges Project and having manufactured the whole set of hydro-turbine generating unit with a rated output not less than 440 MW on turbine and a rated output not less than 450 MVA on generator.

5. Instructions to Bidders

(1)A consortium will not be accepted as an eligible bidder by the Tenderee. (2)The interested Bidder can get further information from the Tenderee and purchase the Bidding Documents from 9:00 to 11:00 and 14:00 to 16:00 since June 10th, 2003 (Beijing time) in the Tenderee's location (10th Floor, Zhaoshang Building, No.118 Jianguo Road, Chaoyang District, Beijing) upon receipt of non-refundable payment of 30,000 RMB or 3,800 USD for one set (including related floppy disks) of IFB1 or IFB2 respectively.
(3)All bid submissions (including eligible Bid Security) shall be received by the Tenderee at No.1, Jianshe Road, Yichang, Hubei, China, CTGPC office building, not later than 14:00 on October 15th, 2003 (Beijing time).
(4)The Bidder shall furnish as part of its bid, a Bid Security in the sum of three million RMB Yuan or four hundred thousand US dollars for IFB1 or IFB2; The total sum of Bid Security shall be six million RMB Yuan or eight hundred thousand US dollars. The Bids without Bid Security will be rejected.
(5)The Tenderee will open all Bids at the deadline of receipt of the submission. The process of Bid opening will be witnessed by the Notary Public. The representatives of respective Bidders shall be present.
Three Gorges International Tendering Company Ltd. (TGT).
Address: 10-C, China Merchants Tower, No.118 Jianguo Street, Chaoyang District, Beijing, P.R. China
Attn.: Mrs. Yu Bin/Mr. Li Yijun
Post Code: 100022
Tel: 0086 10 65663391
Fax: 0086 10 67124392
Address: No.1 Jianshe Road, Xiba, Yichang City, Hubei Province, P.R.China
Attn.: Mrs. Yu Bin/Mr. Li Yijun
post Code: 443002
Contact Tel: 0086 717 6762596
Contact Fax: 0086 717 6270303
Contact email: liyijun@tgt.sina.net



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