While this project hasn't attracted worldwide attention (and condemnation) accorded the Three Gorges dam, it was postponed in 2005 after the builders tried to defy and order from the State Environmental Protection Agency (SEPA) to conduct a mandatory environmental impact assessment. Apparently SEPA gave the $5 billion project the green light in late 2005.
Another interesting article I came across discusses the 'dam fever' gripping southwestern China, and many of the sometimes successful efforts by NGO's to bring it under control.
On a side note, there are apparently many small 'cottage-industry' dams being constructed across China on smaller rivers for local power generation. The photo is of one under construction near Emei Mountiain in Sichuan that I stumbed across while hiking in 2006.
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