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Debt from hydropower construction projected to triple by 2018

October 29, 2014
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Debt from hydropower construction projected to triple by 2018The debt from hydropower construction is projected to triple by the end of 2018, says the Secretary of the Ministry of Economic Affairs. Dasho Sonam Tshering was speaking at the opening of the Energy, Economy and Environment Conference, today.

Dasho Sonam Tshering says the current debt from hydropower construction stands at Nu.51 BN. It is set to hit Nu.161 BN by 2018.

The rising debt from the hydropower construction, however, should not be a cause for concern to the nation, reassured the Secretary of the Ministry of Economic Affairs.

“Hydropower debts are self-sustaining. There are no guarantees to be provided by the government because ultimately if there are government guarantees to be provided, you have to treat it almost like national debt.”


Dasho said hydropower debt could be classified almost like project financing. “So that all risk related with hydropower project financing is linked with the project itself.”

Dasho Sonam Tshering also said the construction of hydropower projects is faring satisfactorily. He added construction of another four hydropower projects is expected to begin in next one to two years.

The three-day Energy, Economy, and Environment Conference is organised by the Bhutan Ecological Society and QED.

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