China has begun construction on a massive dam project in Tibet’s Yarlung Tsangpo river, with a planned investment of 1.2 trillion yuan ($167 billion), state media reported Saturday.

The project, led by the newly formed China Yajiang Group, will consist of five cascade dams in Nyingchi, southeastern Tibet. Most of the electricity will be transmitted out of the region, though some will serve local needs.

The dam, one of China’s most expensive infrastructure undertakings, is seen as part of Beijing’s push to boost economic growth. However, it risks straining ties with India, as the river flows into disputed Arunachal Pradesh and feeds into a key Indian waterway. China claims downstream areas won’t be affected.

Source: Bloomberg

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