The final call will be made during the last Committee meeting in New Delhi, India next month

Dechen Dolkar

After 11 years, 34 Technical Coordination Committee (TCC) meetings, numerous geo-technical studies, and cost escalation running into billions, the stalled dam construction for the 1,200MW Punatsangchhu-I hydropower project might finally resume after the TCC meets for the last time in New Delhi, India next month to make the final call.

The PHPA-I dam construction was stopped after a major slide occurred on the right-bank of the site, leading to an indefinite deferral. After experts carried out several rounds of geo-technical studies, two possible solutions were floated – to either build a dam or barrage – to salvage the mega hydropower project.

During the deliberation of the Public Accounts Committee (PAC) review report at the joint sitting yesterday, the Minister for Energy and Natural Resources, Gem Tshering, said that a final decision could not be reached at last month’s TCC meeting in Delhi.

Lyonpo said that the final decision will be made at the TCC meeting scheduled this month, which will be the final meeting of the Committee.

“For now, the decision is to construct the dam with appropriate stabilisation and mitigation measures,” Lyonpo said.

“If we can reach a final decision this month, work on the dam construction will commence from August this year.”

Both international and Bhutanese experts identified deep-seated fractures and a shear zone on the right bank of the dam site. Initially, the Indian counterparts did not accept the presence of these fractures but they now acknowledged it, added Lyonpo.

The Chairperson of the PAC, Eminent Member Phuntsho Rapten, said that PHPA-I powerhouse is nearing completion. However, even after its completion, it cannot be used for several years due to the delay in the completion of the dam and other associated issues.

He also expressed concerns about expected cost overruns due to the preservation and maintenance of the powerhouse and the potential additional expenses arising from the expiry of the defect liability period of the electro-mechanical components.

The PAC’s recommendation to the government also included the need to expedite the policy decision on the construction of dam or barrage options for Punatshangchhu-I project.

PAC also emphasised the need to ensure that the underground powerhouse and the erected electro-mechanical equipment do not pose challenges during testing and commissioning.

The National Council member from Paro, Ugyen Tshering, said that the PHPA-I issue has persisted for 11 years, resulting in an annual revenue loss of Nu 5.5 billion and interest accumulation amounting to Nu 5 billion, which is a substantial loss for the country.

“ Hydropower projects typically take around six to seven years to complete, and it is now high time to make a decision for PHPA-I,” he said.

Member of Parliament from Nubi Tangsibji constituency, Tashi Dorji, pointed out that the Mangdechhu project was completed in seven years and benefited the country significantly. He urged the Prime Minister to take responsibility for completing the PHPA-I project.

The joint sitting adopted the PAC’s recommendations in entirety with 65 ‘Yes’ votes and one ‘No’ vote, out of 66 Members present and voting. The government will have to submit an Action Taken Report on the recommendations adopted during the winter session.

The Punatsangchhu-I project is executed under a mutual beneficial bilateral agreement signed between the government and the Government of India in July 2007. The construction works on the hydro project kicked off in November 2008.

The cost overrun for Puntshangchhu-I has reached a whopping Nu100 billion from the initial project cost of Nu 35 billion. So far, the project has spent around Nu 86 billion.

The government of Bhutan hired a third independent foreign company, Stucky, to review the dam site and they recommended a barrage. The Bhutanese side is advocating for the construction of a barrage, while the Indian side is pushing for the construction of a dam.

The cost of constructing the barrage is estimated to be between Nu 16 and Nu 18 billion.