Hidroaysén Case: Building Dams in Chile’s Patagonia Region

Abstract

Purpose

This teaching case intends to be a tool for academic purposes as a way to show the different assessments an investor should make and the many problems he/she may face, when evaluating a megaproject. It reviews the experience of two large corporations in Chile, intending to build a major hydroelectric generation project in Chile while facing major opposition from environmental NGOs and other stakeholders. Although in the view of many industry experts and consultants Hidroaysén was a good and necessary project, the environmental implications and some of the project’s stakeholders created a deadlock.

Design/methodology/approach

This teaching case was written with the idea of being used as a tool for classes in order to discuss the implications of environmental issues in big projects. The research was based on particular information of the project, financial data of the companies involved, and other public sources (news, interviews, etc.).

Findings

The conclusion of this case is that private initiatives, without the right alignment of political actors and civil society, could face the risk of being blocked and not being executed.

Practical implications

COP21 guidelines for responsive investment could be a guideline to follow, aligning private interest with development for countries in the third world.

Originality/value

We offer a way to analyze external impacts on a project of this kind, that using a common framework (COP21 guidelines) could avoid risks taking all considerations into the project.

Citation

Uribe, R.U., Manterola, F.J., Sontag, C.V., Botero, A.M. and Harvey, C.R. (2016), "Hidroaysén Case: Building Dams in Chile’s Patagonia Region", Climate Change and the 2030 Corporate Agenda for Sustainable Development (Advances in Sustainability and Environmental Justice, Vol. 19), Emerald Group Publishing Limited, Leeds, pp. 177-192. https://doi.org/10.1108/S2051-503020160000019009