Emerging powers news
Update on Sinohydro
2010-03-18, Issue 474
http://pambazuka.org/en/category/emplayersnews/63124
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Fahamu is one of the ten civil society organisations that supported International Rivers Network dialogue with Sinohydro and the need for the company to advocate a more responsible environmental policy that adopts people centred and environmental friendly operations in Africa.
Editors Note:
Fahamu is one of the ten civil society organisations that supported International Rivers Network dialogue with Sinohydro and the need for the company to advocate a more responsible environmental policy that adopts people centred and environmental friendly operations in Africa.
Given that Fahamu is the premium Pan-African organisation that supports networks for social justice issues, the emerging powers in africa programme, would like to draw the attention of African social movements and advocacy groups to the initiative below. For most social activists in Africa trying to dialogue with Chinese companies about their investments and projects on the social costs to the environment and people’s livelihoods is to difficult to achieve. This is because of various barriers including language, suspicion and not knowing where to start or who to approach and of course dealing with bureaucratic red tape. Therefore, the initiative below represents an important platform for those interested African environmental advocacy groups and social movements to engage with the IRN-Sinohydro dialogue.
While this dialogue is a global attempt to make Sinhydro more accountable and transparent about its operations and environmental footprint, it does holds useful lessons for African social activists to exploit this space to make their voices heard about what is happening in Africa with regard to other Chinese companies and their investment footprint, especially the impact on the ground.
At a time when the Chinese government and Chinese coprorates, like Sinohydro are becoming more aware of its global image and concerned about the poor publicity about their weak governance practices, the IRN dialogue initiative provides an opening for social movements, advocacy groups to make their voices through a track two dialogue approach.
Sanusha Naidu, Research Director, Emerging Powers in Africa Programme
Update: Sinohydro to Prepare Environmental Policy and Get Listed at Stock
Exchange?
Peter Bossard
Sinohydro plans to get listed at the Shanghai stock exchange. The company
has also started the process of drafting an environmental policy. Here is
a brief update.
Sinohydro is a Chinese state-owned enterprise and the world?s largest
hydropower contractor. The company estimates that it controls 70% of the
Chinese and 50% of the global hydropower engineering market.
Sinohydro decided to get listed in 2007, and restructured itself into a
shareholding company by the end of November 2009. The company plans to
offer 25-35 percent of its shares (as A-Shares) at the Shanghai stock
exchange before the end of the year. It hopes to raise at least RMB 12.9
billion (USD 1.9 billion) in the process.
Sinohydro agreed to engage in a dialogue with International Rivers in the
summer of 2009. Our basic position is that Sinohydro needs an
environmental policy that reflects highest international standards if it
wants to position itself as a leading global brand.
In early March, Sinohydro informed us that it is now drafting an
environmental policy, and invited our input into the process. This is a
very positive step. Sinohydro is also cooperating with a Chinese
environmental organization in the implementation of the Nam Ngum 5
hydropower project in Laos.
Under its green securities policy, China?s Ministry of Environmental
Protection (MEP) has to approve the listing of companies that are active
in twelve polluting sectors. The list includes thermal power ? a sector in
which Sinohydro has several projects. On March 3, the Ministry posted
Sinohydro?s Environmental Audit Report on its website, and invited
comments from the public.
On March 11, a coalition of ten civil society organizations from China and
other host countries of Sinohydro projects submitted their comments to the
MEP. The NGOs expressed support for Sinohydro?s IPO under the condition
that the company indeed adopts and implements an environmental policy that
reflects highest international standards. They put forward a series of
specific recommendations for Sinohydro?s environmental policy. Their
recommendations were based on the report of the World Commission on Dams,
the World Bank safeguard policies, and the Integrated Policy Package of
Chinese environmental institutions. The NGOs asked the MEP to work with
Sinohydro in the preparation of an environmental policy.
If the MEP approves Sinohydro?s IPO, the listing application will next be
considered by the China Securities Regulatory Commission. After this, the
company can move to the stock exchange.
International Rivers and partner groups will submit more specific
recommendations to Sinohydro for its environmental policy, and will
continue to monitor the company?s projects and IPO process. We will also
advise potential Sinohydro investors on the company?s evolving
environmental policy and track record.
Peter Bosshard
International Rivers