The Bhutan Ministry of Energy is expected to recruit consultants in December for a Bhutan Power Development project that includes preparation of the 114-MW Dagachhu hydroelectric project.
The Asian Development Bank (ADB) is considering US$1.6 million in technical assistance for the program, which is intended to expand nationwide power supply, extend electricity to remote rural households, and enhance regionwide energy efficiency and cross-border economic cooperation. The project grew out of the ADB’s previous Rural Electrification/Renewable Energy project. (HNN 3/15/06)
The technical assistance is to prepare and strengthen comprehensive project design, feasibility assessment, financing plans, and implementation plans for three components:
o Rural electrification of 8,934 households;
o Interregional transmission links of 45 kilometers between Dhajay and Gelephu; and
o Development for power export of 114-MW Dagachhu, a run-of-river project with 19 kilometers of transmission to deliver power.
A financial package is to be devised through public-private partnerships in which an optimal financing/guaranteeing scheme will be sought from public and private investors and lenders.
A total of 40 person-months of international consultants and 32 person-months of domestic consultants would be required over 14 months. Consultants, contractors, and equipment would acquired under ADB guidelines.