The frequent breakdown of the Unit-III of the Mangdechhu hydropower project has incurred the government a revenue loss of over Nu 1.3bn. The government will incur an additional revenue loss of Nu 1.8bn this year if the unit is not restored before or during the monsoon season. This is as per the National Budget for the Financial Year 2021-2022 which the finance minister Namgay Tshering presented in the National Council today.
The Unit-III of the Mangdechhu Hydroelectric Power plant stopped functioning since September last year after a flashover inside the unit’s stator and winding jumper led to the shutdown of the turbine.
The minister, however, said that despite the losses, the project has made enough revenue to pay off a loan of over Nu 4bn this year.
According to the National Budget for the Financial Year 2021-2022, Mangdechhu earned over Nu 12bn last year. However, according to the report, the 720 MW hydropower plant could have earned more revenue had it not been for the third unit which suffered a major failure during the year.
Eminent Member Dasho Tashi Wangyal of the National Council questioned the government about the completion of restoration works of the unit.
“National Budget shows that Mangdechhu project’s third unit has suffered eight major failures in a span of 17 months starting from July 2019 with a revenue loss of more than Nu 1.3bn since commissioning. Also, we heard the news that the electromechanical equipment of the project is not very reliable. Now from the government’s side, when will the restoration be complete? And what are your plans to give proper liabilities to the equipment manufacturer?”
The finance minister said the unit is expected to be restored by September this year adding that an independent review team is formed to study the problem inside the unit.
“For time being, the government has formed an independent review team. They will see if the defect in the third unit is due to the poor quality of the equipment or because of the continuous use of the machine or due to the transportation of these machines. An important thing we should know here is even if we are still in the period of contractual defect liability if we take legal action, it is going to take a long time.”
The project’s management, in April, said that the unit will be restored by July this year.
Mangdechhu hydropower plant has four units each with a capacity to generate 180 MW of electricity.
Sonam Tenzin/Samten Dolkar
