The Bhutanese Leading the way.
The Punatsangchu-II Hydroelectric Project (PHPA II), is 99 percent complete as of the end of June 2025.
The target date for commissioning of units 5 and 6 are mid-July 2025 and mid-August 2025 respectively. There are no issues as of now for units 5 and 6. Assembly and erection works for the units are in full swing in the powerhouse.
An internal target is to do it by July though.
Currently, there are four units under operation, and each is generating 170 MW (Total 680 MW).
Unit 4 which faced some initial issues is under operation, generating 170 MW of power.
The seepage issue of the powerhouse is fully under control. Based on the directives of the technical group, all its recommendations are implemented.
According to the Ministry of Energy and Natural Resources (MoENR), the project is making all-out efforts to ensure that all six generating units are commissioned within the year, in line with the timeline mentioned in the budget report, which is by July this year.
Currently, the installation and testing of E&M works for units 5 and 6 are underway, while four units have already been commissioned.
With this progress, the project has already started generating revenue through the sale of electricity in the domestic market. For the months of January and February alone, PHPA II transferred Nu 820 million (mn) to the Ministry of Finance.
Throughout its implementation, the project encountered several challenges that significantly delayed progress and increased costs. During the early stages, a shear zone was discovered during the excavation of the dam foundation. In 2016, the crown of the Downstream Surge Gallery (DSSG) collapsed near the powerhouse. In 2019, the Phelraychhu flood washed away a large portion of the contractor’s electromechanical equipment. The project was further affected in 2020 when the COVID-19 pandemic brought operations to a near standstill. More recently, seepage in the powerhouse delayed the installation of E&M equipment.
MoENR said that these technical, geological, and external challenges resulted in time and cost overruns but all the major issues have now been addressed, and the project is moving steadily towards full commissioning.
Once fully operational, PHPA II is expected to generate about 4,500 million units of electricity annually.
MoENR said that this output will strengthen Bhutan’s energy security and contribute significantly to national revenue through energy exports and domestic sales.
