China has officially launched the construction of a massive hydropower dam in southeastern Tibet near the Indian border, state-run Xinhua News Agency reported Saturday. The groundbreaking ceremony was attended by Chinese Premier Li Qiang.

The project, located in Nyingchi, involves the construction of five hydroelectric power stations with a total investment of approximately 1.2 trillion yuan (USD 167.1 billion). The electricity generated will primarily be transmitted to other regions in China, while also meeting local energy needs in Tibet.

According to Xinhua, the project is part of China’s broader push for renewable energy and regional development. However, the plan has sparked concern in neighboring India and Bangladesh over potential downstream impacts.