This dam (or - more accurately - system of dams) will generate as much electricity as "26 nuclear power plants or 10 big coal-fired power stations burning 50 million tons of coal". And it will reduce - eventually even prevent - the almost annual flooding that brings so much misery to large areas of rural China.
The attitude of the Chinese government seems to be basically:
These things are desirable, therefore we shall carry out the project. We are smart enough, and strong enough, to deal effectively with any negative consequences.
But of course, they almost certainly aren't. They run the risk of dealing a killer blow to the already ailing water table and *completely* destroying both the natural ecosystems of and the fertility of a region that straddles both the Chinese rice and wheat producing areas.
It's a recipe for famine and ecological disaster. And it highlights the fact that western capitalism hasn't completely cornered the market in short-sighted stupidity.
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