International Rivers - Sinohydro

Grace Mang, China Global Program Coordinator

An experiment in dialogue

Timeline

International campaign against the Merowe Dam, Sudan. Targets included China EXIM bank and Sinohydro, as well as other international contractors

Ongoing policy dialogue

Sinohydro and International Rivers meet to discuss their global role

2009 2010 2011

Sinohydro informs International Rivers that it will develop an environmental policy, seeks input

International Rivers reviews draft environmental policy

International Rivers invites Sinohydro to start a policy dialogue (letter)

An Assessment:Limits to constructive dialogue?

If Sinohydro wants to become a leading global brand, needs to adopt an environmental policy reflecting leading international standards.

International Rivers

Chinese enterprises need an open mind, friendly and frank manner to conduct exchange and even debate with international dissident organizations openly and honestly, in order to promote understanding and exchange of views.

In the past, some Chinese enterprises disregard international radical organizations, or let them spread the negative remarks in international community, which will reduce the credibility of business to different degrees, and damage China's image.

Fan Ji-xiang, President SinohydroPublic Diplomacy Quarterly, April 2010

Opposition to hydropower projects around the world has made the company more cautious while bidding for projects… We now bid for projects which have the approval of either the World Bank or the Asian Development Bank

Huang Baodong, Vice PresidentGlobal Power Report 2010

• Avoidance and sensitivity to certain hydropower projects (dam building in Burma) but not all (Kajibar, Sudan and Pak Lay, Laos?).

• Commitment to minimum standards when developing hydropower projects overseas – e.g. when operating as a project developer and investor, Chinese law is set as a minimum standard.

• Determination to deal with problems as they arise (sending in executives from the Group’s international department).

• Additional training efforts in environmental management and community relations

• Discussion of an environmental policy, but no clear

indication of when it may be finalized and adopted.

• GEI’s MOU with Sinohydro on Nam Ngum 5 project in Laos

What has been the impact ?

Challenges

• Maintaining pressure on Sinohydro and momentum of the policy dialogue

• There are few leverage points for an international NGO

• Consistency of our approach to Sinohydro with International Rivers’ work around the world

• Deciphering Sinohydro’s bureaucracy

• Lack of technical knowledge and expertise in environmental and social standards, not to mention weak implementation capacity

• Getting Sinohydro to engage in policy dialogues with NGOs in host countries