World Bank / Blogs

In Mauritania and Liberia, the Chinese government for the first time joined the World Bank-sponsored donor meetings which coordinate aid to developing countries. China’s participation reflects a gradually increasing cooperation between Beijing and the Washington-based financial institution. From a civil society perspective, this is a mixed bag.

With a capacity of 1,070 megawatts and a price tag of $1.45 billion, the Nam Theun 2 Dam in Laos is the biggest hydropower project that the World Bank has approved in more than ten years. A large reservoir and the diversion of the Theun River into another major river will affect more than 100,000 people, and the project’s benefits are unlikely to reach the country’s rural poor.

A new report shows that investment in wind and solar energy surpassed support for large hydro projects in 2007. The World Bank has missed the trend on emerging renewable technologies, and continues to focus its support on large dams.

According to a report soon to be released by Oil Change International, the World Bank Group increased its lending for coal by an astonishing 256% in 2008. Lending for large hydropower projects increased from $751 million to $1,007 million. Support for renewable energy stagnated at a low level.