Friday, August 29, 2008

No Norad contract for ABB in Tibet

A Norwegian subsidiary of ABB, Elektrisk Bureau, came under fire for its application to Norad for a mixed credit for deliveries to the Yang Zhou Yong hydropower plant in Tibet. (See DT 14/92)

According to the Washington-based Campaign for Tibet, the project would have negative environmental impacts and would primarily benefit the growing Chinese population in Lhasa. The timing of the case also raised eyebrows, as the application to Norad came less than a year after the crackdown at Tian An Men Square and just months after the Dalai Lama was awarded the Nobel Peace Prize in Oslo.

The ABB firm admitted that it had not considered the political aspects of the project, but said in its defence that the Norwegian Embassy in Beijing had strongly recommended the project.

“We felt that we had followed the official view," an ABB Norway spokesperson said to Development Today.

In the end, Norad did not have to take a stand on this delicate project as the Chinese government decided to arrange financing on its own.

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