Course:ECON371/UBCO2011WT1/GROUP6/India and Bangladesh Spar over Tipaimukh Dam

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India and Bangladesh Spar over Tipaimukh Dam

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Tipaimukh Dam Area

tipaimukh+dam.jpg

Summary

New Delhi (India) is trying to assure Dhaka (Bangladesh) that the construction of their proposed Tipaimukh Dam across the Barak River in Manipur will not negatively impact them, but Bangladesh remains unconvinced. Concerns have been voiced about what will happen to the retained water during drier monsoon seasons when water will be needed for fisheries, cultivation and navigability of downstream channels. Indian officials are arguing that the 1,280 foot-long and 535 foot-high embankment is necessary for flood control and actually enhances the safety of the people of Bangledesh.

Analysis

Although an Environmental Impact Assessment (EIA) has been carried out, it is apparent that there is a conflict of interest. A primary concern of Bangladesh is water retention and the inability to navigate channels, fish or cultivate crops. The EIA completed by Agricultural Finance Corporation of Mumbai was apparently independent of the Indian government when making its decision. This can either be trusted, or Bangladesh should appoint its own EIA team to avoid bias and protect its best interest.

Property rights are an ongoing debate for this project. India has the right to build a dam on their land, but when the downstream water flow on an international river is regulated by another nation, it is cause for concern. India also has the right to do what it takes to provide its people with electricity. An agreement between the two nations will need to be made, preferably before the construction of the dam, to keep relations friendly.

There is also a certain amount of risk involved in the construction debate. The Tipaimukh region of Bengladesh is seismically active and in only 1988 an earthquake was at 6.6 on the Richter scale. The cost of dams goes up proportionally with the threat of earthquakes as the degree of difficulty also goes up. Building dams in seismically active areas is risky no matter what the budget is. Even if the dam is designed for a 6.6 earthquake, there is no guarantee that a higher earthquake couldn’t occur. Sedimentation build up behind dams can also be problematic in earthquakes due to liquefaction.

Failure of this dam would be disastrous for both India and Bangladesh. Mainly, India will just lose their investment and have to find a new alternative to power their country. Bangladesh will experience flooding that will destroying villages, wildlife habitat and damage crops in addition to losing their investment. Undoubtedly, a cost benefit analysis will need to be completed for this project considering the needs and damages to both nations. From a preliminary point of view, there are more associated costs and risks for Bangladesh than India.

Fairness and moral issues are also a cause for concern. Although the actual dam would be in India, many of the negative aspects of installing a hydroelectric generating facility will be shouldered by Bangladesh. For this to be an economically agreeable project for both of them, Bangladesh should be compensated accordingly for its contribution.

As the debate continues, so does the involvement of various political parties in Bangladesh. Again, it is not within the scope of this class to analyze political motivations on national/international projects, but their effects on project outcomes should not be ignored.

Conclusion

Hopefully, India and Bangladesh will come to an agreement before construction commences to keep their international relations generally positive. If this agreement is not made, this dam could become an issue that people remember as a fiasco for generations. Currently, Bangladesh is not willing to pay for the benefits it will receive from the construction of this dam as they are outweighed by the costs.

References

http://www.afcindia.org.in/aboutus.html

Professor’s Comments

This is an example of the challenges of making international agreements. Any rights that downstream nations have exist either by virtue of the desire of the upstream nation to have a relationship - maybe there are other trade issues - or the credible threat of causing harm to the upstream nation. In this case, Bangladesh is not in a position to threaten India. So, the question is what does Bangladesh have that India wants, to make it worth having a deal.

8/10