
In December 2010, the first elected government announced the shelving of the 20 MW Begana hydropower project proposed by the Bhutan Power Corporation (BPC) aimed at providing energy security to Thimphu and also a massive new source of drinking water.
The BPC at the time remained hopeful that the project could be taken up in the future when the time is right.
The time may be just right for the project with an energy hungry Bhutan and a water thirsty Thimphu.
The Detailed Project Report for the project was completed in August 2023 and its capacity was upgraded to 25 MW.
The project is being developed as an integrated multipurpose power plant with annual energy generation of 104 GWh that will address energy security and drinking water for Thimphu and peri-urban areas.
The cost at June 2023 price levels for the hydropower component has been estimated at Nu. 2.694 billion (bn).
The previous studies of Begana standalone project was undertaken by the Bhutan Power Corporation Limited in association with local consultancy firm Norlha Associates, Thimphu in August 2009, which envisaged an installed capacity of 20 MW and 101 GWh of annual energy generation.
The diversion structure where water will be taken in from Thimchhu is located about 1.42 km from the nearest road point near the picnic spot after crossing Cheri monastery while the power house is located adjacent to BPC Training Center in Begana.
The energy security and reliability for Thimphu will improve with the availability of another power source. It will also offset a little of the energy imports Bhutan makes in the winter months.
While the project will operate to higher capacity in monsoon and summer as a purely run-off river project, the firm power generation in winter will be limited to a little over 2 MW.
In terms of how it will benefit Thimphu’s drinking water supply there is already a drinking water system for Thimphu, which is being tapped 1.40 km downstream of the proposed Begana project’s intake.
This system is envisaged to be integrated into the power intake system. This will ensure a dependable intake system for the drinking water also. This means more water going into the intake system.
Additional drinking water is being proposed to be extracted at the upper peripheral areas of Thimphu that would include Kabesa, Begana and Kuzhugchen. The integration is being consulted with the stakeholders.
There is no proposal currently to integrate irrigation requirements into the Begana project.
For now, other aspects such as tourism is not integrated in the project but opportunities do exist.
The first elected government had shelved this project on environmental grounds like the impact on wildlife, forest and impact on the monasteries there.
Here DGPC said a detailed Environmental and Social Impact Assessment (ESIA) has been undertaken as part of the DPR. Funds will be allocated for the implementation of mitigation measures and taking forward of management plans.
The project is supposed to start in October 2024 and finish by May 2027, however, some further studies are being undertaken to address a number of concerns. Once the concerns are addressed, the project can be taken forward for implementation after obtaining the statutory clearances. The start date of October 2024 could change accordingly which also means that finish date of May 2027 may also not be enough.
The project will be financed on 70:30 debt equity ratio. While DGPC will arrange the equity, debt financing is being discussed with FIs.
Water will be diverted into around 6 km of steel Head Race Pipes that will be partially buried. It will avoid extensive tunneling.
The first elected government could afford to shelve the project in December 2010 as at the time it was assumed that Bhutan had several bigger and better options with 10,000 MW by 2020.
However, 10,000 MW by 2020 is dead in the water leaving Bhutan with no options but to take up such projects.
Also, the Nu 400 mn Dodena water project was supposed to solve Thimphu’s water woes, but it was clearly not enough and this project has the ability to supply a huge quantity of drinking water to Thimphu.