Some members of the National Council recommended a third-party vetting to study the ground reality of the Punatsangchhu Hydroelectric Project I (PHP I). They said prolonged execution time and the huge cost incurred thus far for a project yet to be executed is a great cause of concern for the nation.
The national budget report 2020-2021 mentions that PHP I is expected to be commissioned in March 2025 with a revised estimated cost of close to Nu 94bn. The 1200 MW project initially began as a Nu 35bn worth project to be executed by 2016. As of March this year only 86.65 per cent of works have been completed and close to Nu 80bn have been disbursed.
Eminent Member Tashi Wangyal of the National Council recommended a third-party vetting for recommendations and a way forward. “PHP I is incurring a huge cost and there are a number of problems at the project site which the existing experts could not solve. The National Council has offered this recommendation to the previous government but we heard that the contractors and expatriates were not supportive of it. Now that it is taking too long to complete and the cost has increased by three-fold of the initial estimate it is better to close the project if we cannot make it work out. But before actually deciding on closing we would recommend a third-party vetting PHP I and hear their recommendations. And I feel we should do it immediately,” he said.
Other members supported the recommendation and suggested that the government carry out a third party investigation from countries other than Bhutan and India.
Ugyen Tshering, the Member of Parliament (MP) of Paro, backed the recommendations. He said, “it would be better to go for third-party vetting. For now, we may not feel the impact because we have grant assistance and loan to depend on. But in the long run, Bhutanese people and our children will bear the brunt. So I think now is the right time to seek proper research because when we visited the site, the management there narrates their side of the story and says they are doing it right and there is a different story from the government’s side. So it is high time we call for a third-party study.”
“When we say third party, we are not proposing experts from Bhutan or India. There must be experts in other countries who would study the problems and let us know if the project can be continued or closed. Otherwise, it is a mere job-creating project without any concrete outcome for several years. So our recommendation would give the Economic Affairs ministry the support that they need to decide on the matter,” added Nima, the Bumthang’s MP.
PHP I is financed through Inter-Governmental arrangement with grant assistance of 40 per cent and 60 per cent loan from the Government of India.
Phub Gyem & Sonam Pem
