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IBRD approves

controversial

China loan

WASHINGTON: The World Bank said Wednesday it approved a $400 million loan to help China build a huge dam in its southwestern Sichuan province to supply electricity to some 120 million people.

The controversial loan -- and a $150 million World Bank guarantee for commercial financing for the project -- got the go-ahead despite opposition from U.S. lawmakers who wanted it delayed because of alleged human rights abuses by China, including the recent arrest of activist Harry Wu.

The Clinton administration abstained in the vote on the loan, but other nations on the Bank's board supported it.

The international lending organisation has already lent $380 million to the nearly $3 billion Etran II hydroelectric project on the Yalong River.-Reuter