10 hydropower projects finalised: Bhutan

Bhutan: Bhutan and India have agreed to a final list of 10 hydropower projects with a total capacity of 11,576 MW to be constructed in Bhutan by 2020.

This was decided during the visit of the economic affairs minister Lyonpo Khandu Wangchuk to India recently.

Of the 10, six projects with a total power of 9,340 MW will be carried out between the two countries on the ‘inter governmental model’ of 40 percent grant and 60 percent loan. The remaining four with 2,236 MW will be on the joint venture model, whereby public sector companies from both the countries will carry out the project.

“We are, however, keeping on top of the target 10,000 MW a cushion of 1,576 MW just in case some projects are unfeasible, or there are other problems,” said Lyonpo Khandu Wangchuk.

During the Delhi meeting, it was also decided that the next project to be implemented right after Punatsangchu 1 would be the Mangdechhu 720 MW.

The two countries also agreed to set up training institutes in Bhutan to train Bhutanese professionals so that they can get jobs with the hydropower projects. “We’re looking at how to strengthen our current vocational training institutes and how to establish the new training centres,” said the minister.

He added that India’s WAPCOS was hired to find out the required number of people and the type of skills needed for the projects.

These were all decided by the empowered joint group (EPJ) set up by the two countries to fast track the mega projects.

“The joint group will give fast track approval of implementation modalities, financing mechanisms, fund flows, contingency plans and also monitor the progress of all activities related to the projects,” said Lyonpo Khandu Wangchuk.

The EPJ group has Lyonpo Khandu Wangchuk as Chairman, Finance secretary Lam Dori, Director General of energy department Yeshey and DHI CEO Karma Yonten. From India are the principal advisor (finance), joint secretary (north) (both of ministry of external affairs) and joint secretary of the power ministry. The Indian ambassador will be a permanent invitee.

Of the ten agreed upon projects, Sunkosh, Wangchu, Amo Chhu, and Bunakha of more than 5000 MW will be in the reservoir scheme, meaning that the river will be dammed to store water unlike the run of the river schemes. “This will help in energy security by allowing us to store water for the dry winter months and also get higher rates since electricity generated during peak hours will get higher rates,” said Lyonpo Khandu Wangchuk.

The minister said that all the 10 projects would start construction work by 2012-13, by which time Punatsangchu-1 would be nearing completion.

He added that the Punatsangchu-1 project has been tendered and awarded to Larsen and Turbo (L&T) for the construction of dam, worth Nu 12.4 billion, Hindustan construction company (HCC) for power house, worth about Nu 7.0 billion, and Gamma India for the headrace tunnel, worth about Nu 4.0 billion