The Yuam Water Diversion Project: An Economic Benefit for China and an Environmental Detriment for Thailand

Nov 8

Nov 8 The Yuam Water Diversion Project: An Economic Benefit for China and an Environmental Detriment for Thailand

The Yuam Water Diversion Project, newly green-lit by the Thai government after decades of being overlooked, could give China a new economic foothold in Southeast Asia for their Belt and Road Initiative (BRI). This development has not gone unnoticed by opponents to the BRI and has prompted concern over how this project will impact China’s influence on the global community. Although the project promises solutions to decade-long problems, Thai citizens and environmentalists are far from satisfied with what has been proposed. Is this venture one that will benefit Thai infrastructure and economic relations or one that will cause unnecessary damage to the environment?

The Yuam Water Diversion Project aims to ease demands for water in rural areas of Thailand by creating a 69-meter-high dam on the Yuam River and diverting some of the water to the Bhumibol Dam via 61 kilometers of underground pipeline. This transfer of water levels will allow for farmers and other rural Thai citizens to have increased access to a consistent water source. The new dam on the Yuam River will also generate hydropower for the Thai government. It will become a part of a hydropower network of dams primarily based on the Salween River, a river along Thailand’s border with Myanmar, split between China’s and Myanmar’s control.

The Yuam Project was first proposed in the early 1990s but was largely disregarded due to high project costs. Originally set at 70 billion baht (£1.5 billion), a new solution proposed by an unnamed Chinese company says that they can complete it for only 40 billion baht (£870,000,000) and in only four years, three less than originally projected. This Chinese company has allegedly been contacting Veerakorn Kamprakob, a member of the ruling Palang Pracharath Party and Vice-Chair of the special committee assessing the Yuam Project, for several years regarding their bid for the project. The company’s far lower cost and timetable, one of its major appeals, is directly tied to the benefits China will receive if the bid is accepted by the Thai government. The company involved, while unnamed by Kamprakob, is reportedly one of the top Chinese companies when it comes to infrastructure. The company’s vested interests in the project revolve around China’s Belt and Road Initiative, an international infrastructure project aiming to expand China’s influence in the economic sphere. The initiative focuses on developing and gaining access to networks of railways, ports, and pipelines. By linking economically with other countries, China can grow and exert its authority over established institutions and conventions.

Over 70 countries have joined the BRI, including Thailand. The Yuam project is not the first BRI venture for Thailand, however, and only one other project has been successful. This project, a high-speed railroad between China and Thailand faced harsh setbacks due to administrative issues. The railway project had nearly 30 complications leading to further clarifying meetings between contractors and the government. Past failed ventures, including the construction of a coal power plant, have failed due to grassroots protests.

By investing in this project, not only will China have closer economic ties with Thailand directly, but it will also have a bigger part in Thailand’s international endeavors via the Salween network of dams. In the Southeast Asian region, Thailand has the second-largest economy, so obtaining good economic relations and expanding Thai presence in the BRI is important for China. Many Southeast Asian nations, such as Laos and Cambodia, are already close politically and economically with China, so strengthening their position with Thailand could secure the region under China’s influence. This kind of political growth is the cause of concern for western and non-BRI-affiliated nations. The combination of easy access to the ports, inland pipelines, and transport infrastructure, and economic sectors of 70+ countries sets China up in a stable position against Western powers seeking to counter China’s rise in authority.

While foreign nations worry over how the project will affect China’s international stance, local Thai citizens are concerned over how the proposed pipeline will affect their homes. The underground pipeline will need to be built under nearly 61 kilometers of ecologically important forests. Although Kamprakob has stated that this process will not cause any environmental damage, no solution or evidence has been provided to show that this is possible.

More concerns are raised over how quickly the project was greenlighted. In August of this year Thailand’s National Environmental Board passed an Environmental Impact Assessment (EIA), verifying that the venture would not harm the environment. Since this decision has been passed, three petitions from groups of local citizens have been created to dispute it. The EIA did not include any discourse or discussions with local citizens and falsely included the names and photos of citizens and villages despite not consulting either in the assessment.

Along with the hastily passed EIA, many Thai are concerned about whether the project is even needed. Experts claim that a new dam and pipeline are not the most effective or financially viable solutions. 40% of the water that is sent through existing pipelines is lost before reaching its destination. Solving this problem is more cost-effective than building new pipelines and risking new leaks and effectively puts the environment at far less risk.

Despite the low price and promises of operable solutions, the Yuam Water Diversion Project faces several environmental problems, leading to local outcry. Despite the movement against the Yuam project remaining small now, past ventures can show just how effective they can be. Given how eager China has been for this project to be greenlighted and how persistent the country has been to win the bid, it is likely that even if the current Chinese company fails to get the bid, China will seek the same type of relations with Thailand through another BRI venture. With the potential gains China has if it succeeds in establishing strong political and economic relations with Thailand, the outcome of this project and future BRI ventures will have lasting effects on the international system.