China government audit: Xiluodu dam project overbudget

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These days, it seems like China is just tackling one massive energy project after another. Of course, there’s the Three Gorges Dam, the South-North Water Diversion Project, and now, also, the Jinsha River dam. This is a $10 billion project that would make it the second largest dam in the country, after the Three Gorges.

The China Daily reports today that a government audit says that the project was about $250 million overbudget and that the project was 27 months ahead of schedule, and raised the height of the dam.

The Chinese newspaper also reported that company representatives are denying the allegations made in the report.

“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 from the site, which borders Yunnan and Sichuan provinces in southwest China.

“The office said we have shortened 27 months of construction. Well, they have overrated our efficiency,” he said.

“There will be no safety risks under our current working procedures because we do not allow any shortcuts when we build major projects, such as the near-300-m-tall dam.”

The newspaper added that the dam would be online as early as 2013, and would be able to produce 64 billion kWh, equivalent to the entire hydropower capacity of Iceland.

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