Why did the World Bank refuse to fund the Three Gorges Dam project?

The World Bank refused to provide funding for the Three Gorges Dam project primarily due to significant environmental and other related concerns.1

The project faced intense scrutiny and controversy throughout its development. Key issues that influenced this decision included:

• Environmental Impact: There were widespread fears regarding the destruction of natural features, the pollution of the reservoir by industrial and human waste, and the potential for the massive impounded water to trigger earthquakes and landslides.12
• Human Displacement: The construction necessitated the relocation of at least 1.3 million people—with some critics estimating the figure as high as 1.9 million—from numerous cities, towns, and villages.12
• Cultural Loss: The reservoir submerged countless rare architectural and archaeological sites, as well as areas of significant scenic beauty.12

Despite these concerns and the lack of international financial support, the Chinese government proceeded with the project, which was officially inaugurated in 1994 and reached full generating capacity in 2012.1