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DGPC officially takes over 720MW Mangdechhu hydropower project

December 28, 2022
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The Mangdechhu Hydroelectric Power Project Authority has handed over the 720 MW Mangdechhu hydropower project to the Druk Green Power Corporation. The official handing over ceremony was held yesterday in Thimphu in the presence of Economic Affairs Minister Loknath Sharma, and Ambassador of India to Bhutan Sudhakar Dalela. A handing-over document was signed between the Managing Directors of MHPA and DGPC.

 Prime Minister Dr Lotay Tshering and India’s Prime Minister Narendra Modi jointly inaugurated the Mangdechhu Hydroelectric Power Project in August, 2019.

The commissioning of the project has increased Bhutan’s Electrical Power Generation Capacity by 44 per cent to over 2,300MW. Since its commissioning, the project has produced more than 9.5 billion units of electricity and generated revenue of 36 billion ngultrum.

As per the officials from the Ministry of Economic Affairs, most of the electricity generated by the plant will be used to meet the country’s local energy demand and the surplus power will be exported to India at a tariff rate of a little over four ngultrum per unit. The tariff will be increased by 10 per cent every five years until the loan is repaid.  They said that from the annual revenue, around 8.5 billion ngultrum will go to the government’s coffer and around five billion ngultrum will be used to  repay the loan for 17 years from the day of commissioning. The government took a loan of 47 billion ngultrum from India while constructing the project.

The plant is expected to generate three billion units of electricity and revenue of 12 billion ngultrum annually. Besides, it will reduce Green House Gas emissions by about 2.4 million tons every year.

The Mangdechu Hydropower Project also received Brunel Medal from the Institute of Civil Engineers based in London in 2020 in recognition of its excellence in civil engineering and the project’s social and environmental credentials.

Chenga Dawa

Edited by Phub Gyem

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