Construction of the world’s biggest hydropower megadam has begun, China’s premier has said, calling it the “project of the century”. The huge structure is being built on the Yarlung Tsangpo river, in Tibetan territory.

Li Qiang made the comments on Saturday, at a ceremony in the region to mark the start of the build, leading Chinese markets to rise on the expectation of the long-planned megaproject, first announced in 2020 as part of China’s 14th five-year plan.

The project announced by Li is planned for the lower reaches of the river, according to the official state news outlet, Xinhua. Xinhua reported that the project would consist of five cascade hydropower stations, producing an estimated 300 million megawatt hours of electricity annually at a cost of about 1.2tn yuan (£124bn).

In comparison, the Three Gorges dam cost 254.2bn yuan and generates 88.2m MWh.

The Yarlung Tsangpo megadam will reportedly harness the power created by the river dropping 2km in about 50km as it winds through a canyon on a U-shaped bend.

India and Bangladesh have voiced concerns over the project, fearing the water could be held or diverted away from them.

In response, officials have said China does not seek “water hegemony” and never pursues “benefits for itself at the expense of its neighbours”.

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