The ongoing drought has depleted hydroelectric power generation to the point that Yunnan has temporarily stopped transmitting electricity to Guangdong province.

Yunnan's hydroelectric dams typically generate a surplus of electricity, which is sold to surrounding provinces and countries.

But this year during Chinese New Year, Guangdong actually donated 350 million kilowatt-hours of electricity to Yunnan, a role reversal for one of the larger consumers of Yunnan's hydroelectric power.

The dearth of precipitation in Yunnan since last year has caused hydroelectric stations across the province to run below capacity, while some are not operating at all, according to local media reports.

Overall, exports of Yunnan-generated electricity to Guangdong are down by 4.23 billion kilowatt-hours this year.

A government official familiar with the energy sector said that the government has made contingency plans that will force electricity-intensive industries to shut down if power supplies become too scarce.

Meteorologists are predicting that Yunnan will not receive significant amounts of precipitation until May at the earliest.

For the last decade, the elephant in the living room of China's relationships with the countries through which the Mekong River flows has been the growing number of dams built on and planned for the Lancang River – as the Mekong's headwaters in Yunnan are known.

The river - which in February was at half its normal level for that month - is a source of food and livelihood for the 65 million people living in its basin in Yunnan, Laos, Myanmar, Thailand, Vietnam and Cambodia.

On Monday, Thai Prime Minister Abhisit Vejjajiva met with Chinese Deputy Foreign Minister Hu Zhengyue, telling Hu that residents of the lower Mekong region were concerned about the river's recent low water levels and were uneasy regarding the lack of clear information about China's dams on the Lancang, according to a Nation report.

Despite Abhisit's polite request for better information, Thai officials came to China's defense, saying that the recent low levels in the lower Mekong basin – the lowest in half a century – were primarily due to a drought in Laos. Foreign Minister Kasit Piromya said that rain in Laos normally accounts for 35 percent of the Mekong's water supply and that only four percent of the river's total water was held behind Chinese dams.

China currently has three dams operating on the Lancang, with a fourth at Xiaowan scheduled to commence operation in 2012. If completed, the Xiaowan hydropower station will be the world's tallest dam, rising almost 300 meters and capable of retaining 15 billion cubic meters of water.

Plans for a protest outside the Chinese embassy in Bangkok next month by residents of the northern Thai city of Chiang Rai suggest that residents of China's neighbors downstream may become increasingly vocal about the impact they feel Chinese dams are having on the river.

The Bangkok protest will be timed to coincide with the first Mekong River Summit, organized by the Mekong River Commission (MRC) and scheduled to be held in the Thai beach town of Hua Hin from April 2 to April 5.

The conference's theme, "Transboundary water resources management in a changing world" is slightly undermined by the fact that the MRC's membership only includes Thailand, Laos, Vietnam and Cambodia, with Myanmar and China only participating as "dialogue partners".

It is difficult to imagine China making concessions to protestors, governments or anyone else for the time being. The Bangkok Post is reporting that a letter sent last month to Yunnan Governor Qin Guangrong by the Chiang Rai provincial government demanding the release of water from Lancang River dams was rebuked by Qin, who said the water was needed in Yunnan for agriculture during the dry season.

In addition to the protest related to the Mekong's current low levels, some Thai villagers will also attempt to deliver a petition to China seeking compensation for flooding in 2008:


In May 2009, the United Nations said China's plans to eventually build eight dams on the Lancang "may pose the single greatest threat to the river". China, however, is not the only country building dams on the river. Laos has plans for 23 dams on Mekong tributaries and the Mekong itself to be finished in the coming year, with Vietnam and Cambodia also planning dams of their own.

Lancang River image: news.china.com.cn

Airport "mafia" ring broken
Local media are reporting that police arrested five men yesterday who have been terrorizing vendors, tourist agents, and other solicitors since 2008 at the Kunming Airport in a mafia-style shakedown scheme.

Police stated that the gang's boss, surnamed Liu, and its other members were all from either Shandong province or northeast China. Their alleged criminal activities consisted primarily of threatening people offering services at the airport with physical violence if those people did not pay the gang a fee.

Police reportedly launched the investigation that led to Tuesday's arrests in late 2009 after receiving reports of "fierce thugs" roaming the airport. Police say that so far they know of at least 100,000 yuan in coerced payments that the gang collected last year.

Drought may affect electricity supply
In addition to threatening access to drinking water and damaging crops, Yunnan's record drought is now endangering the province's ability to generate sufficient levels of electricity.

According to a Xinhua Net report, Yunnan Power Grid Corporation president Liao Zelong predicts that low hydroelectric dam reservoirs will cause a 20 percent shortfall in the province's power generation capacity through the end of May, when the rainy season is expected to begin.

The problem has been compounded by breakdowns and coal shortages at coal-fired power plants.

It remains unclear whether electricity can be imported from surrounding provinces, or if any other measures can be taken to meet demand.

Pipelines to move oil and gas through Kunming
Reuters is reporting that two pipelines will be built to carry oil and gas from Myanmar into China through the Kunming area.

The first will be completed within the next two years and will carry up to 12 million metric tons of crude oil every year from the Myanmar port city of Kyauk Phyu, helping to streamline shipment of crude oil to China from Africa and the Middle East by going overland and avoiding the narrow Strait of Malacca between Malaysia and Indonesia.

A refinery with a capacity of 200 thousand barrels per day is being built in Kunming to process oil from this pipeline.

The other pipeline, with an unknown completion date, will carry up to 12 billion cubic meters of Myanmar natural gas into China every year. Spurs of both pipelines could eventually extend as far as Nanning and Chongqing.

While these projects would seem to strengthen Yunnan's position as an economic gateway to Southeast Asia, China and Myanmar's rocky relationship and Myanmar's history of political canniness signal that they are not without risks.

Photo: Kunming Information Hub

China's second-largest dam project is back in the spotlight after a report published by the National Audit Office criticized the dam's developer for lack of oversight, overspending and poor allocation of funds, according to a China Daily report.

This is not the first time the Xiluodu Hydropower Station (溪洛渡电站), developed by the China Three Gorges Project Development Corporation, has come under government scrutiny. Xiluodu is located on the upper reaches of the Yangtze River between Yunnan and Sichuan provinces, where the waters are known as the Jinsha River.

In 2005, China's State Environmental Protection Agency halted work on the Xiluodu project until the company – which had previously built the world's largest dam downstream at the Three Gorges – completed and submitted an environmental impact assessment.

On Monday, the National Audit Office's report accused the hydropower company of adding nearly US$250 million to the project's total cost by altering the dam's original design and finish work ahead of schedule. Company management has also been accused by auditors in Beijing of collecting 10 million yuan in illegal gains via a lack of control of the project's budget and bidding process.

"They have exaggerated the problems a little. We have explained to the auditors before that we have run the project according to a long-term plan," Hong Wenhao, construction director of the Xiluodu dam project, told China Daily.

Dam projects in southwest China such as Xiluodu have come under increasing criticism in recent years for reasons including environmental impact, displacement of local villagers and the potential link to increased seismic activity in the region.

The Xiluodu project, which began construction in November of 2007, is expected to begin accumulating water in 2013.

China's Ministry of Environmental Protection (MEP) suspended approval for dams on the upper reaches of the Yangtze River last week, citing two of China's largest hydropower companies for illegally commencing construction on dam projects near Lijiang, according to a China Daily report.

According to the MEP, in January Huadian Power and Huaneng Power illegally blocked the middle reaches of the Jinsha River, as the upper reaches of the Yangtze are known, for the Ludila and Longkaikou dams, respectively.

MEP spokesman Tao Detian said that the two companies had failed to conduct environmental impact assessments, adding that both power producers had been ordered to cease building the dams immediately.

Some construction of the eight planned dams on the Jinsha – with a total projected cost of 200 billion yuan (US$29.3 billion) – may have been halted temporarily, but there is no indication that the dams have been permanently scrapped.

"For the approved projects, supplementary environmental reviews will be needed," Tao said.

If completed, the total installed capacity of the eight dams on the Jinsha would reach 20.59 gigawatts, just short of the capacity of the Three Gorges Dam further downstream. Of the eight dams, a dam at Jin'anqiao is already under construction, and the environmental impact assessment for a dam at Ahai was approved by MEP earlier this year.

Passing through Qinghai, Yunnan and Sichuan provinces, the 2,300 kilometer Jinsha River flows through areas rich in biodiversity and inhabited by ethnic minority groups. It is also the source of much of the Yangtze's fish life, which would be greatly diminished if the planned dams were built.

This is not the first time that the central government has stopped proposed work on damming the Jinsha. At the end of 2007, a plan to dam and fill Tiger Leaping Gorge was scrapped after much public debate, a development which many consider to be the first major victory for China's nascent environmental movement.

China's plans to build a series of eight dams on the upper reaches of the Mekong River have come under criticism by the United Nations, which released a report last week stating that the Chinese plan "may pose the single greatest threat to the river".

The Mekong River – known in China as the Lancang River – is a source of food and livelihood for the 65 million people living in the river basin in Yunnan, Laos, Myanmar, Thailand, Vietnam and Cambodia.

The river's water quality has deteriorated in recent years, but according to the UN report, it has not yet reached "alarming levels". However, China's dams would likely lead to "changes in river flow volume and timing, water quality deterioration and loss of biodiversity." The area's wealth of biodiversity recently received global attention with the discovery of 1,000 new species of animals and plants in the region.

Ma Zhouxu, spokesman for China's Foreign Ministry, told reporters last week that the Chinese government is equally focused on the Mekong's development and protection.

China is not the only country with big dam plans for the river – Laos is planning 23 dams on the Mekong and tributaries of the river to be finished before 2011. Vietnam and Cambodia also have plans to build new dams on the river.

The Greater Mekong Subregion (GMS), which includes Yunnan and Guangxi plus the five countries through which the Mekong flows, is experiencing rapid development and economic and industrial expansion.

This dynamism will increase pressure on the river, but according to Mukand S Babel, one of the authors of the UN report, "The Mekong is in good condition at this time and can take more pressure such as irrigation development or industrial development."

The report did note that river basins along the Mekong including Tonle Sap in Cambodia, Nam Khan in Laos and Sekong-Sesan Srepok in Vietnam and Cambodia are in danger from increasing water demand and development and called for coordinated planning by the region's governments to deal with existing and future problems before they get out of hand.

China-based luxury business portal The Hurun Report has released its list of China's millionaires, which it qualifies as individuals with personal wealth of 10 million yuan, which equates to 1 million GBP or US$1.46 million.

According to the Hurun 2009 Wealth Report, Yunnan came in 23rd out of the 31 provinces, autonomous regions and municipalities surveyed, with 4,500 millionaires. Of those millionaires, 390 have personal wealth of 100 million yuan or more, ranking 22nd nationwide.

Not surprisingly, the bulk of China's wealth is concentrated in the country's coastal region:



In total, China has 825,000 millionaires and 51,000 individuals with 100 million yuan or more, according to the report. The average millionaire is 39 years old, while the average individual with 100 million yuan or more is 43, the report said.

What is generating wealth in Yunnan? According to Hurun, half of the province's millionaires made their fortune through mining. Energy, real estate, pharmaceuticals and biological resources were also leading sources of wealth among Yunnan's richest residents.

Economic stimulus package pushing southwest China dam projects forward
Professor Jiang Gaoming (蒋高明) of the Chinese Academy of Sciences' Institute of Botany recently visited several hydropower project sites around Yunnan and found that Beijing's recently announced infrastructure development-focused economic stimulus package has sped up the rate of dam construction in Yunnan and Sichuan.

The mandatory environmental impact assessments (EIAs) for dam projects are not being taken very seriously by companies or officials. After visiting dam projects in different stages of completion, Jiang noted that:


Jiang's use of the term 'cost of doing business' is reminiscent of the way Chinese media described the way Yunnan Chengjiang Jinye Industrial and Trade Co viewed the small fines it had to pay for neglecting to conform to local environmental laws. The end result? Yangzonghai Lake is now suffering from heavy arsenic pollution.

Jiang also noted that while the plan to dam Tiger Leaping Gorge has been officially shelved, the project – which originally called for eight dams – has been relaunched upstream under the new name Longpan Dam Project. The new project would displace 100,000 people along the Jinsha River. Exploratory drilling and infrastructure construction for the project are reportedly underway.

Tengchong airport ready to go
The Yunnan Daily is reporting that the new airport in Tengchong (腾冲) in southwest Yunnan has received regulatory approval from the Civil Aviation Administration of China's southwest regional bureau to commence operations. The airport – located in the village of Tuofeng 12 kilometers from Tengchong will be named 'The Hump Airport' (驼峰机场) to commemorate the flight routes over the Himalayas flown during World War II.

Tengchong's main tourist attractions include hot springs and the rustic old town of Heshun. China Eastern Airlines' Yunnan subsidiary has been granted rights to operate flights connecting Tengchong with Kunming, Lijiang and Jinghong/Xishuangbanna.

Price of fireworks in up 10 percent
Kunming Daily is reporting that prices of fireworks in Kunming this year are roughly 10 percent higher than before Chinese New Year in 2008. Although government statistics claim that open sales of illegal fireworks are down 80 percent from last year, Kunming safety officials are advising purchasers of fireworks to make sure that they buy only from vendors displaying government licenses.