Public opposition defuses nuclear plans(2)

A key project

The 37 billion yuan ($6 billion) cost of the project, South China's first planned industrial park for the production of nuclear fuel, was to have been borne by the local government and the companies, according to sources within the local government.

The facility would have supplied power plants in Guangdong and neighboring Fujian province, and would have had an annual production capacity of 1,000 metric tons of uranium by 2020.

The Guangdong Provincial Reform and Development Commission approved construction of the project in December, naming it as a key project during the next five years. By March, the local government had signed a construction contract with CGNP and CNNC.

Once the contract had been signed, the government and the companies arranged for experts to conduct preliminary work, such as selecting a suitable site and undertaking an initial assessment of the possible environmental impact, according to the official.

Crucially, however, the locals hadn't been told about the plan and the first they heard of it was when the notice announcing the risk to social stability assessment was posted.

"Now you see the result. It wasn't something we'd bargained for. The project would have boosted the local economy. We have learned lessons from the project; we didn't conduct an efficient and practical promotion of nuclear fuel before canvassing public opinion. That's why a large number of residents demonstrated their opposition," the official said.

"We should also have better informed residents outside Heshan about the project. People from cities in the delta region, in particular, displayed great concern. They were worried about potential nuclear leaks when the project was put into operation," he added.

However, Chen Anxiu, of Jiangmen Nuocheng Consultant Co, the company responsible for conducting the assessment, said the public manner in which it was conducted was part of a series of measures intended to keep the residents well informed.

"A final risk assessment has yet to be undertaken. We will still conduct the assessment, even though the project has been canceled," said Chen, who added that the assessment was in line with regulations established by the central government.

In days gone by, the process of commencing work on large projects was relatively quick and simple, but rules introduced by the National Development and Reform Commission in the second half of 2012 have imposed much more stringent requirements, according to Chen.

For example, large local projects must be halted temporarily if they meet with "medium-level" opposition, according to the regulations.

Specifically, the new rules have added a mechanism for assessing a project's potential risk to social stability to the evaluation procedure.

According to the rules, all local projects requiring NDRC or State Council approval are required to submit an assessment of the risks to social stability with their applications.

Before, local governments were only required to submit environmental and land assessments when applying for approval of large construction projects.

"Local governments are facing stricter requirements when it comes to seeking permission to launch large investment projects," said Feng Shengping, a researcher with the Guangdong Provincial Situation Research Center.

According to the rules, the NDRC will not approve any project if it is assessed as posing "medium or high-level risks to social stability".

"That's not just advice, it's a mandate," said Feng, who believes the local government should have informed the public earlier about the planned construction of the facility in Heshan.

"Within a short time, residents would have known more about the project, especially if the local government and the construction company had emphasized that it was safe to develop the facility," Feng said.

Prior to issuing the social stability risk assessment notice, the local government had earmarked around 144 million yuan to compensate the locals for the loss of some 229 hectares of farmland.

"We had to cancel the project because a majority of nearby residents demonstrated strong opposition. We respect the residents' opinions and will not apply for approval of the project," Wu Yuxiong, mayor of Heshan, told a media briefing in the aftermath of the decision to drop the plan.

Han Zhipeng, a political advisor in Guangzhou, the capital city of Guangdong province, partly attributed the cancellation to inadequate public information.

"Why did most people know so little about the project before the assessment of risk to social stability was announced? The public should be better informed," he said.