Target set for 2020: 11576 MW

Thimphu, March 24, 2009: India has agreed to buy over 11,000 MW of hydropower from Bhutan in the next 11 years and the two countries have reached an agreement to this effect.

Minister for Economic Affairs Khandu Wangchuk after on concluding his visit to New Delhi said that the an additional protocol to the 2006 agreement has been signed for 10 projects in Bhutan to produce 11,576 MW power from Bhutan by 2020.

To these, six projects having capacity to produce 9,340 MW will be jointly built by two countries on ‘inter governmental model’ with 40 percent grant and 60 percent loan from India. Other four producing 2,236 MW will be built as joint venture projects where private sectors will also be called upon to invest.

Wangchuk said the target of 10,000 MW was increased by 1,576 in case all projects are not completed on time or any other problems arise in the middle.

Under this scheme, Mangdechhu 720 MW will begin shortly after completion of Punatsangchu I (1200 MW), which is expected to complete by 2012. Wangchuk said Punatsangchu I will begin in a month or two.

An empowered joint group (EPJ) with seven members led by Wangchuk has been established to accelerate the implementation of the projects, which will give approval of implementation modalities, financing mechanisms, fund flows, contingency plans and monitor the progress.

Other members of the EPJ are finance secretary Lam Dori, Director General of energy department Yeshey and DHI CEO Karma Yonten. Principal advisor (finance), joint secretary at the ministry of external affairs (north), joint secretary of the power ministry and Indian ambassador to Bhutan will represent India in the group.

Sunkosh, Wangchu, Amo Chhu, and Bunakha will be built with reservoirs and others will have direct river fed. 

As the projects increase, the two governments also decided to set up training institutes in Bhutan to train Bhutanese for job opportunities in these projects. 

Selected projects

Sunkosh – 4,000 MW (Inter-governmental)

Kuri Gangri – 1,800 MW (Inter- governmental)

Chamkarchu – 1,670 MW (Joint Venture)

Punatsangchu I – 1,200 MW (Inter- governmental)

Punatsangchu II – 1,000 MW (Inter- governmental)

Wangchu – 900 MW (Joint Venture)

Mangdechu – 720 MW (Inter- governmental)

Amochu – 620 MW (Inter- governmental)

Kholong Chu – 486 MW (Joint Venture)

Bunakha – 180 MW (Joint Venture)