The Chinese say there is no adverse environmental affects, but the local inhabitants maintain that this project will dry-up the water of the lake within few decades. Tibetans feel the electricity generated from this hydro-pump station will be used for Chinese military and civilian population who dominate the urban areas of Lhasa and Shigatse. From the beginning this project was full of controversy. The site and plan is approved by the state. The Plan includes building three access tunnels and a main tunnel for diverting water from the lake to the Yarlung Tsangpo Piver.
Initial construction begins with the go ahead of the central authorities.
The Panchen Lama,Tibet's second highest spiritual and religious leader, plays a major role in opposing the power station. Construction of Yamdrok Tso Hydroclectric Project begins. Soldiers of the armed police's engineering troops are brought into the area to oversee construction. Tunnel drilling reaches the depth of 1,505 m, slightly ahead of schedule. Numerous reports from Tibetans say that the real purpose of the tunnel is to prospect for precious metals.