Bhutan power program includes 114-MW Dagachhu

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.

The ADB project officer is Kaoru Ogino, Energy Division, SARD, Asian Development Bank, P.O. Box 789, 0980 Manila, Philippines; (63) 2-6326211; E-mail: kogino@adb.org; Internet: www.adb.org.

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