The Bhutanese Leading the way.
During the National Assembly’s Question Hour, Member of Parliament of Bumdeling-Jamkhar Constituency, Wangdi, queried the Ministry of Energy and Natural Resources (MoENR) about the timeline and logistical plans for the Kholongchhu Hydroelectric Project, following the Prime Minister’s announcement of its impending commencement.
He specifically requested clarity on the project’s start date, the possibility of maintaining the Kholongchhu office in Trashiyangtse town, and how the government plans to manage cost escalations and integrate contingency plans for solar and wind energy in the face of climate change.
To which Lyonpo Gyem Tshering, MoENR said, “Efforts are being made to start the project at the earliest. In so doing, DGPC is taking up with Indian private investors as a strategic partner to raise financing for the project. Currently, the two sides are discussing the Shareholders, Power Purchase, and Concession Agreements.”
The minister further explained that discussions are underway with Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) for debt financing.
Addressing the issue of cost escalation, he said, “To achieve financial structure, the costs have been updated with adequate contingencies to arrive at the cost to completion. As such, any cost escalations beyond what has been estimated will have to be absorbed by two shareholders.”
In addition to hydropower, the minister outlined the government’s plans to diversify energy sources to ensure energy security and address climate change. “The ministry is planning to develop solar projects over 1000 MW in the 13th Five-Year Plan (FYP) and 28 MW of wind power in the next 5 years to complement hydropower and address energy security as well as climate change issues. Currently, other than a few utility-scale solar projects like the 23 MW Sephu solar project, we are identifying potential sites and conducting feasibility studies at various places,” Lyonpo said.
