China-driven hydropower: lessons from Ghana and Cambodia

The document examines the Bui Dam in Ghana and the Stung Tatay project in Cambodia, analyzing how ESG standards were applied. It finds that while Chinese firms led construction, the implementation of ESG standards was dominated by local actors, leading to outcomes that reflected the institutional capacities and transparency levels of the host governments. Both projects resulted in significant habitat destruction for endangered species and loss of local livelihoods, though Ghana exhibited higher levels of transparency and stakeholder engagement than Cambodia.

• China's domestic hydropower regulation is split between large-scale projects, which require coordination between the National Energy Administration, Ministry of Water Resources, and Ministry of Ecology and Environment, and 'rural' or 'small hydropower' projects (below 50,000 KW) which have a simpler management system.
• The Stung Tatay hydropower project in Cambodia, a 246 MW dam funded by a $540 million loan from China EXIM Bank, suffered from a severe lack of transparency; the project's Environmental Impact Assessment (EIA) was not made public, and there is no evidence that promised agricultural support, healthcare, or forest conservation programmes were implemented.
• The Stung Tatay project caused significant environmental damage to the Cardamom Forest, affecting endangered species such as Siamese crocodiles and elephants, with conflicting reports on the flooded area: the EIA claimed 2,949 hectares permanently, while the Japan International Cooperation Agency (JICA) estimated 4,600 hectares.
• In Ghana, the Bui Dam project resulted in the inundation of approximately 21% of the forest area in Bui National Park, leading to the presumed drowning of a population of about 305 black hippopotamuses because the Bui Power Authority (BPA) lacked the resources to track or relocate them.
• The resettlement process for the Bui Dam displaced 1,216 residents from 219 households; while the Ghanaian government followed World Bank and IFC standards and provided more transparency than Cambodia, the process failed to deliver promised skills training, fishing equipment, and the development of 'Bui City'.
• A comparative analysis shows that ESG implementation in both countries was heavily dependent on recipient authorities, meaning institutional weaknesses in host governments were replicated in mitigation processes, thereby increasing the reputational risk for Chinese contractors.

APA

South African Institute of International Affairs (2021). China-driven hydropower: lessons from Ghana and Cambodia. https://saiia.org.za/research/china-driven-hydropower-lessons-from-ghana-and-cambodia/

Chicago

South African Institute of International Affairs. China-driven hydropower: lessons from Ghana and Cambodia. 2021. https://saiia.org.za/research/china-driven-hydropower-lessons-from-ghana-and-cambodia/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=China-driven hydropower: lessons from Ghana and Cambodia |date=7 December 2021 |url=https://saiia.org.za/research/china-driven-hydropower-lessons-from-ghana-and-cambodia/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2021chinadriven, author = {{South African Institute of International Affairs}}, title = {{China-driven hydropower: lessons from Ghana and Cambodia}}, institution = {South African Institute of International Affairs}, year = {2021}, month = dec, url = {https://saiia.org.za/research/china-driven-hydropower-lessons-from-ghana-and-cambodia/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }