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The final decision will be made at the last committee meeting next month in New Delhi, India.
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After 11 years, 34 Technical Coordination Committee (TCC) meetings, countless geotechnical studies and cost escalations running into billions of dollars, construction of the stalled 1,200MW Punatsangchhu-I hydropower project dam may finally resume following a final decision at the last Technical Coordination Committee (TCC) meeting to be held in New Delhi, India next month.
The construction of the PHPA-I dam has been halted due to a massive landslide on the right bank of the site, causing the works to be postponed indefinitely. After several rounds of geo-technical studies, experts have proposed two possible solutions – either a dam or a barrage – to save the mega hydropower project.
During a joint meeting yesterday to consider the Public Accounts Committee (PAC) review report, Energy and Natural Resources Minister Gem Tshering said no final decision could be taken at the TCC meeting held in Delhi last month.
Leonpong said the final decision will be made at the TCC meeting this month, which will also be the last meeting of the committee.
“At this point, we have decided to build the dam with appropriate stabilization and mitigation measures,” Leonpaugh said.
“If we can reach a final decision this month, the construction work of the dam will start in August this year.”
International and Bhutanese experts have found deep cracks and shear zones on the right bank of the dam. Initially, their Indian counterparts did not acknowledge the existence of these cracks, but now they do, Lyonpo added.
PAC Chairman and Distinguished Member Phuntsho Rapten said the PHPA-I power station is nearing completion. However, due to delays in the completion of the dam and other related issues, even after completion, it will not be usable for several years.
He also expressed concern about the projected cost overruns in the preservation and maintenance of the power station, and the possible additional costs arising from the expiry of the defect liability period for electromechanical components.
The PAC’s recommendations to the government also include the need to expedite a policy decision on the construction of the Punatshangchhu-I dam or barrage.
The PAC also stressed the need to ensure that the underground power station and installed electromechanical equipment do not pose challenges during testing and commissioning.
Ugyen Tshering, a member of the Paro regional state committee, said the PHPA-I problem has lasted for 11 years, resulting in a loss of Nu 5.5 billion in tax revenues and accumulated interest of Nu 5 billion per year, which is a huge loss for the state.
“Hydropower projects usually take about six to seven years to complete and now is the time for the PHPA-I to make a decision,” he said.
Tashi Dorjee, MP for Nubitangsibugi constituency, pointed out that the Mandechu project took seven years to complete and brought great benefits to the country. He urged the Prime Minister to take the responsibility of completing the PHPA-I project.
The Joint Session adopted the PAC’s recommendations in full by a vote of 65 to 1, with 66 MPs present and voting. The government must submit a report on its actions on the recommendations adopted during the winter session.
The Punasanchu-I project is being implemented under a mutually beneficial bilateral agreement signed between the Government of India and the Government of India in July 2007. The construction work of the hydropower project started in November 2008.
The cost overrun of Puntshangchhu-I has reached a staggering Nu 100 billion, while the initial project cost was Nu 35 billion. So far, about Nu 86 billion has been spent on the project.
The Bhutanese government hired a third independent foreign company, Stucky, to review the dam site and recommend building a barrage instead of a dam. Bhutan’s side advocated for the barrage, while India pushed for a dam.
The cost of building the barrage is estimated to be between Ngultrum 16 billion and Ngultrum 18 billion.
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