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MPs question PHPA’s cost escalation

December 1, 2015
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MPs question PHPA’s cost escalationDuring their visit to Punatsangchhu Hydropower Project sites in Wangdue Phodrang yesterday, the MPs from the National Assembly questioned Project’s Managing Director, RN Khazanchi on the project’s cost escalations.

For Punatsangchhu-I, the project cost have now escalated to almost Nu 100 B from the initial project cost of Nu 35.14 B. Punatsangchhu-II is costing about Nu 76 B from the initial estimate of Nu 37.78 B.

RN Khazanchi said increase in project cost has been common with hydropower projects.MPs question PHPA’s cost escalation-

“Whatever we are doing today is not happening for the first time, it has been happening in every hydropower projects. It has happened with Tala Hydropower Project.”

In case of Tala Hydropower Project in Chhukha, RN Khazanchi said, the completion cost was Nu 41.25 B, which was an increase by three folds of the initial cost. Similarly, he said, by the time the Punatsangchhu hydropower projects are complete, the cost would have increased by a few more billions.

The Members of Parliament were updated on the overall work progress at the two sites. While PHPA I has achieved a little over 75 percent, for PHPA II close to 67 percent of the work has been completed so far.

“The PHPA projects were planned and implemented by the government some six to seven years ago and it has been reported that the projects are progressing well. But it is not enough to just go by what is reported in paper. The members of parliament wanted to see for ourselves practically. That’s why we are here to visit the project sites,” said the National Assembly’s Speaker, Jigme Zangpo.

Once complete, the two hydropower projects are expected to generate over 2000 Megawatt of electricity, on an average, annually.

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