The Bhutanese Leading the way.
In 2008, Indian Prime Minister Manmohan Singh visited Bhutan’s first democratic Parliament and announced that India is committing to 10,000 MW by 2020.
This commitment was made as hydropower had become one of the key cornerstones of the Bhutan-India relationship.
The projects were even identified along with the cost and schedule of construction.
Leaders from both sides and both governments kept reiterating this target over the years.
However, right from 2009 there were rumblings within India’s Power Ministry on the enormous funds required.
Gradually, over the years, the slow pace made it increasingly clear that 10,000 MW by 2020 would not be possible.
Even then, optimism was kept up that maybe 2020 was too ambitious and the time can be extended.
The mistakes around the 1,200 MW P I project, on which a book can be written, did not help.
Over time, the Indian side made it clear that it cannot fund huge projects like the Sunkosh project or the Kuri Gongri and as reality dawned, the 10,000 MW by 2020 got an informal and quiet burial.
In all honesty, this was a major let down for Bhutan and wasted over a decade plus in economic planning for Bhutan.
If 10,000 MW by 2020 or even half of it happened by 2020 or even 2025 then Bhutan would be in a much better economic shape.
The lure of 10,000 MW by 2020 lead to Bhutanese governments and officials to subconsciously neglect the other sectors of the economy and the private sector for over a decade plus, and it was all for naught.
A lot of the roots of the mass migration of today starts in this lost decade of false anticipation.
Bhutan now aims to build 20,000 MW in hydro and solar projects by 2040 and the funding requirement is USD 26 bn. Almost all these projects are happening with Indian private sector partners and will benefit India.
It will be enormously difficult for Bhutan to get the above funds and so India, as a partner and beneficiary, should help fund these projects.
Prime Minister’s Modi’s recent announcement of a Nu 40 bn line of credit for hydro projects is a good start and there is potential for much more given the close and friendly ties between the two countries.
“Reliability is the precondition for trust.”
Wolfgang Schauble