The 600 MW Kholongchhu Hydroelectric Project is ready to be implemented. A release from Druk Green Power Corporation says, the last hurdle- of negotiations and signing between the Joint venture Partners- have been completed.
Kholongchhu Hydroelectric Project is a joint venture project between Druk Green Power Corporation (DGPC) and Satluj Jal Vidyut Nigam Limited (SJVN Limited).
The Shareholders Agreement was signed by the Managing Director of DGPC Dasho Chhewang Rinzin and Chairman and Managing Director, SJVN Limited, RP Singh.
The economic affairs minister, Norbu Wangchuk, who was also present at the signing, said Bhutan and Indian governments can now begin working on Bunkha, Wangchhu and Chamkharchhu Hydropower Projects.
The press release also says the negotiations of the Shareholders Agreement took more than three months. The two governments had asked the Joint Venture partners to finish drawing up the Shareholders Agreement in two months.
The release says some deadlocks had arisen, on how the Joint Venture Company would be managed, which delayed the process.
Also present at the signing were Indian Ambassador, Gautam Bambawale and Joint Secretary of the Ministry of Power in India, Mukesh Jain.
Meanwhile, the Amendment to Power Purchase Agreement was signed between Dagachhu Power Project and Tata Trading Power Company Limited, India.
A release from DGPC says the tariff has been revised from Rs. 2.40 to 2.90 per unit. The two percent annual increase came through because of the project’s cost escalation.
