Both the Government and the Opposition feel that after a proper analysis if the indications are negative it could be wise to suspend the Punatshangchhu 1 Hydro Electric Project (PHPA-I) for now. The delay of the project and its cost escalation has become a serious concern.
The decision-makers said immediate decision needs to be taken. However, the government assures of speeding up the PHPA-II and complete it by 2021-2022.
The PHPA-I which commenced in November 2008 has now been projected to complete only in 2024-2025 rather than planned completion date of 2015-2016. The delays were mainly caused by the time needed to undertake stabilization measures of the right bank. The delay has also escalated the cost almost to three folds from Nu 35bn to Nu 93.7bn.
“We are working closely with our Indian counterparts. These issues are also taken up by the Indian government, they are also committed to ensuring at least these projects to be completed. We are making decisions for the projects to be completed on time. On PHPA-I we should make a formal decision and see whether we should continue with the project. There has been already huge investments. Even if we undo also so much of the investment will be wasted. We have to review to see whether if we could get a clear timeline with a very little escalation in the cost, all in all, it is in our best interest to continue,” Dr Tandi Dorji, the Foreign Minister, said.
The Government said the assessment is underway and the report will be submitted in the next session of the parliament. A panel of experts is closely monitoring the ongoing project.
Opposition Leader Pema Gyamtsho (PhD) has earlier said If there are chances of further problems and inconveniences and if it leads to problems in the future it would be wise to think seriously about going on with the project. He said knowing that it could lead to a huge impact on the country’ socio-economic development, if continued, it won’t be a wise idea.
“If it is still uncertain. If the experts are not able to say definitely and not able to guarantee geological stability. If it continues to be geologically unstable, it is better actually to hold this project. Instead of again spending millions and continuing with and finally ending up with a situation where it will be useful at all,” the Opposition Leader said.
At present 85.42 per cent of the total work has been completed. PHPA-I is an autonomous body set up for generation of 1,200 MW of electricity.
