4 new hydropower projects’ agreement to sign soon

Hydro-The governments of Bhutan and India have approved to sign intergovernmental agreement for the construction of four new hydropower projects in the Country. The projects are the 600 Megawatt Kholongchhu, the 570 Megawatt Wangchhu, the 770 Megawatt Chamkharchu and the 180 Megawatt Bunakhachu.

Although the economic affairs minister, Norbu Wangchuk, did not specify the exact date on which the two governments will sign the agreement the minister said it will take place anytime soon.

“Immediately after the signing, we have also decided that we would take up Kholongchu project. With regard to other three projects, which are Bunakhachu, the Chamkharchu and the Wangchhu, would also be taken up immediately after the kholongchu has been implemented,” he added.

Lyonpo Norbu Wangchuk said the four projects will be a joint-venture. A public sector company each from Bhutan and India will execute the work. Druk Green Power Corporation will take up the venture from the Bhutanese side.

“The company itself would raise 70 percent of the financial component. And 30 percent would be their own equity.  Of that each of them would have to divided into half, which means from the government of Bhutan, we will have to put in 15 percent and from government of India, they will have to put in another 15 percent.

“However, this 15 percent of grant from Bhutan will be granted as grant by the government of India. This is not loan and, it will be provided to us free of cost and as a gesture of friendship,” the minister said.

The ongoing hydropower projects like Punatshangchu I and II and Mangdechhu are being carried out under I.G mode where only government is involved in the execution of the work.

 

 

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