Research On The Conflict Of Interests And Its Resolution In The Decision-making Of Hydroelectric Projects

Under the background of environmental pollution and shortage of resources, development of water resources is greatly meaningful. On the one hand, hydroelectric development can ease the pressure of power shortage, stimulate the local economy and create employment opportunities. On the other hand, it also brings social comprehensive benefits in the aspects of flood control, water supply, and irrigation. Thus, the governments pay great attention to the hydroelectric development. But there are also opponents preventing the hydroelectric development project because of its negative externalities of environmental pollution and ecological damage. It’s known that hydroelectric development project usually involves so many stakeholders, which make it common to see the conflicts of interests and the benefit gambling in the decision-making process. How to coordinate between different stakeholders and resolve the conflicts of interests has become an urgent issue to be considered.The failure of the Nujiang exploitation and Jinshajiang hydroelectric station obviously reflect the increasing conflicts in hydroelectric development project and some new features during the decision-making process. As one of the key projects promoted by Chongqing, the Small South China Sea hydroelectric project has aroused public concern in recent years. During the decision-making process, conflicts of interests and benefit gambling always exist among central government, local government, hydroelectric enterprises, local residents, environmental organizations and mass media. Therefore, this thesis selects the Small South China Sea hydroelectric project as an example to identify the project stakeholders with their respective interests. The characterizations and causes for conflicts of interests in the project decision-making are also researched and analyzed.This thesis argues that the conflicts of interests appear to be three main types: relations between central government and local government, relations between different local governments with interests association, and relations between government-enterprise alliance and other stakeholders. Causes of those conflicts of interests include several aspects. Firstly, along with the benefits diversification, the decision system lacks the response and prevention mechanism for conflicts. Secondly, citizens’ right to know can’t be realized because of the faulty information disclosure system and information asymmetry. Thirdly, the power structure in decision-making mechanism is lack of checks and balances, and the development of civil society is limited. Fourthly, the governments have their own special interests. Fifthly, there are some problems in decision-making mechanism and environment impact assessment system.To resolve the conflicts of interests in the project decision-making, this thesis proposes suggestions from four aspects:to establish the correct concepts of interests and coopetition; to improve the environmental impact assessment system, public decision-making mechanism and information disclosure system; to build a negotiation platform for stakeholders and to improve the mechanism of interests for promoting the balance of benefits.