66
5.1 Controversial Discussions About Benefi ts and Costs
of Major Water Engineering Projects
The main challenge for water and energy resource developers in the 21st century will be to
improve options assessment and the performance of existing assets. This will require open,
accountable and comprehensive planning and decision-making procedures for assessing
and selecting from the available options (World Commission on Dams 2000 , p. 166).
Major water engineering projects (MWEPs) such as dams are subject to a
controversial debate about their role for development. Especially where water is
scarce and poverty widespread, water infrastructure can improve the livelihood of
people. Large dams can facilitate access to water in water-scarce regions by
improved ground water levels and increased fl ows in downstream areas during
water scarce periods; thereby increasing food security (Shah and Kumar 2008 ). In
addition to irrigation, water supply and fl ood control, electricity generation by
hydropower has been a major driver for many large-scale water infrastructure projects (Biswas and Tortajada 2001 ). These large-scale projects are often co-fi nanced
by international organisations such as the World Bank and increasingly by private
investors (Moore et al. 2010 ; Zarfl et al. 2015 ).
To assess the performance of such investments, the World Bank jointly with the
International Union for Conservation of Nature (IUCN) initiated a multi- stakeholder
dialogue in 1997. The fi nal report of the World Commission on Dams (WCD) concluded that “dams have made an important and signifi cant contribution to human
development, and the benefi ts derived from them have been considerable. In too
many cases an unacceptable and often unnecessary price has been paid to secure
those benefi ts, especially in social and environmental terms, by people displaced, by
communities downstream, by taxpayers and by the natural environment” (World
Commission on Dams 2000 , p. xxviii). While the core principles and strategic priorities of the report were broadly accepted, the guidelines for practical implementation resulted in dissent (Moore et al. 2010 ). Especially professional associations
such as the International Commission on Large Dams (ICOLD) criticised the report
for omitting benefi ts of large-scale dam constructions and calling for procedures
that would deter large dam investments (Varma 2001 ).
The ongoing debate on large-scale water infrastructure remains controversial.
Shah and Kumar ( 2008 ) analyse large dams in 145 countries and fi nd that the
main arguments for large dams are food and drinking water security, hydropower
generation, and fl ood control. The criticism against large dams generally focuses
on environmental, fi nancial, economic, and human rights issues (ibid.). A very
recent study fi nds (1) on average large cost and schedule overruns in the construction of large dams and (2) that risks are not suffi ciently taken into account; therefore, smaller scale projects with less associated risks are strongly recommended
(Ansar et al. 2014 ).
Whether a dam (or any similar large water infrastructure project) yields societal
welfare gains or losses mainly depends on its specifi c characteristics. But as a
general principle any assessment aiming towards a comprehensive analysis has to
include all related costs and benefi ts of different infrastructure options.
B. Hansjürgens et al.
5.1 Controversial Discussions About Benefi ts and Costs
of Major Water Engineering Projects
The main challenge for water and energy resource developers in the 21st century will be to
improve options assessment and the performance of existing assets. This will require open,
accountable and comprehensive planning and decision-making procedures for assessing
and selecting from the available options (World Commission on Dams 2000 , p. 166).
Major water engineering projects (MWEPs) such as dams are subject to a
controversial debate about their role for development. Especially where water is
scarce and poverty widespread, water infrastructure can improve the livelihood of
people. Large dams can facilitate access to water in water-scarce regions by
improved ground water levels and increased fl ows in downstream areas during
water scarce periods; thereby increasing food security (Shah and Kumar 2008 ). In
addition to irrigation, water supply and fl ood control, electricity generation by
hydropower has been a major driver for many large-scale water infrastructure projects (Biswas and Tortajada 2001 ). These large-scale projects are often co-fi nanced
by international organisations such as the World Bank and increasingly by private
investors (Moore et al. 2010 ; Zarfl et al. 2015 ).
To assess the performance of such investments, the World Bank jointly with the
International Union for Conservation of Nature (IUCN) initiated a multi- stakeholder
dialogue in 1997. The fi nal report of the World Commission on Dams (WCD) concluded that “dams have made an important and signifi cant contribution to human
development, and the benefi ts derived from them have been considerable. In too
many cases an unacceptable and often unnecessary price has been paid to secure
those benefi ts, especially in social and environmental terms, by people displaced, by
communities downstream, by taxpayers and by the natural environment” (World
Commission on Dams 2000 , p. xxviii). While the core principles and strategic priorities of the report were broadly accepted, the guidelines for practical implementation resulted in dissent (Moore et al. 2010 ). Especially professional associations
such as the International Commission on Large Dams (ICOLD) criticised the report
for omitting benefi ts of large-scale dam constructions and calling for procedures
that would deter large dam investments (Varma 2001 ).
The ongoing debate on large-scale water infrastructure remains controversial.
Shah and Kumar ( 2008 ) analyse large dams in 145 countries and fi nd that the
main arguments for large dams are food and drinking water security, hydropower
generation, and fl ood control. The criticism against large dams generally focuses
on environmental, fi nancial, economic, and human rights issues (ibid.). A very
recent study fi nds (1) on average large cost and schedule overruns in the construction of large dams and (2) that risks are not suffi ciently taken into account; therefore, smaller scale projects with less associated risks are strongly recommended
(Ansar et al. 2014 ).
Whether a dam (or any similar large water infrastructure project) yields societal
welfare gains or losses mainly depends on its specifi c characteristics. But as a
general principle any assessment aiming towards a comprehensive analysis has to
include all related costs and benefi ts of different infrastructure options.
B. Hansjürgens et al.