The Bhutanese Leading the way.
Around Nu 166 million worth of copper cables damaged in a fire at the Punatsangchhu Hydropower Project Authority-I (PHPA-I) storehouse in February are covered by insurance, with the claim process now underway, according to the Ministry of Energy and Natural Resources (MoENR). The update comes months after a fire broke out on 21st February at a PHPA-I warehouse on the way to Basochhu, destroying eight of the 12 drums of XLPE insulated copper cables stored at the site.
Responding to questions on the status of the investigation, Minister of MoENR Lyonpo Gem Tshering said the exact cause of the fire has still not been determined.
The ministry stated that the 400 kV XLPE cable fire was examined through an internal project committee after the incident. However, the committee was unable to establish the cause.
According to the committee’s findings, seven cable drums were completely burnt, while the insulation of two drums were damaged by excessive heat. Preliminary tests showed that the conductor inside the partially damaged drum remained in good condition, allowing it to be considered for installation after design review by the manufacturer, Suedkabel. One additional XLPE cable drum was found to be in good condition.
The damaged cables were intended for use in the powerhouse, including connecting the Gas Insulated Switchgear (GIS) and the switchyard. The ministry said the total contract value of the cables was Nu 523.898 million, while the total insured value stood at Nu 701.8 million. The insurance policy sum insured was 35 percent more than the contract value, considering 15 percent escalation and 20 percent variation. The incident was reported to the Royal Bhutan Police immediately after the fire, and further reports are still awaited.
The ministry said the works were insured under the contract, and the fire was one of the risks covered by the insurance policy. Bhutan Insurance Limited has already initiated the claim process.
According to the response, all documents required to settle the claim have been submitted to the insurer. The project authority is pursuing an early settlement, while the remaining work under the contract is continuing. The fire broke out between 11 am and 12 pm on 21st February after the store in-charge noticed smoke from the warehouse. Commuters passing the area alerted the police, and the fire was later brought under control by the PHPA-I fire and security team. The cables were supplied by Suedkabel.
The project, which began construction in 2008, was initially scheduled for completion in 2016 at an estimated cost of over Nu 35 billion. However, repeated geological challenges at the dam site have delayed the project, pushing the estimated cost to nearly Nu 100 billion. Construction of the main dam has since resumed following design reviews and stabilization measures.
