China has officially begun building the world’s largest hydropower dam on the Brahmaputra River in Tibet, close to India’s Arunachal Pradesh border, with a staggering investment of $167.8 billion.

Premier Li Qiang inaugurated the project at a ground-breaking event held in Nyingchi City, on the lower reaches of the river known locally as Yarlung Zangbo. The dam site is part of the Mainling hydropower station in the Tibet Autonomous Region, as per the state-run Xinhua News Agency.

The project, considered the world’s biggest infrastructure effort, has sparked concerns in India and Bangladesh — both lower riparian nations — over its possible impact on downstream water flow and regional stability.

According to reports, the plan includes five cascade hydropower stations with a combined investment of 1.2 trillion yuan (approximately $167.8 billion). Once operational, it’s projected to generate over 300 billion kilowatt-hours of electricity annually, supplying power to more than 300 million people.

Besides powering distant regions, the project also aims to meet local energy demands in Tibet, which China refers to as Xizang. The ceremony was attended by members from the National Development and Reform Commission, Power Construction Corporation of China, and local Tibetan representatives.