Punatsangchhu-1 Hydro Project

on 28th july 2007 , Bhutan & India signed a landmark agreement on the implementation of the Punatsangchhu-1 Hydro Electric Project. the agreement was signed at Gyelyong Tshokhang, Thimphu by Mr.Pranab Mukerjiee, external affairs minister , on behalf of government of India & Lyonpo Khandu Wangchuk, Foreign minister on behalf of the Royal government of Bhutan.

- the Punatsangchhu-1 project is a run-of-the-river scheme on the Punatsangchhu river located between 8.5 km & 18.5 downstream of Wangdue Phodrang Bridge. the project wil be funded by the government of India with 40% grant & 60% loan an interest of 10%. the estimated capital cost of the project as per the DPR is Nu.38,148.10 million as per dec 2006 price level.

- the project envisages installed capacity of the 1095 MW (6x182.50 MW) with annual average energy generation of 5377.45 GWH.the project will have 137 mts high concrete gravity dam, 4 intakes, 4 underground desilting chambers, 7.50 km long headrace tunnel & 2 verticle pressure shafts & an underground powehouse. a new provision that would enable both the governments to benefit from Carbon Emission Revenue has also been introduced.

- the construction of project is expected to commence in 2008 & completed by 2014. pre-construction activities of the project have already been started.

- a MoU for the preparaiton of the detalied project report of Punatsangchhu-1 was signed on September 15th 2003.

- under this agreement , both the countries have set out to achieve, inter alia, the export of a minimum of 5000 MW of hydropower from Bhutan to India from 2020.

- 3 hydroelectric power projecthave already been commissioned in Bhutan with Indian assistance, they are:
a) Chukha = 336 MW
b) Kurichhu = 60 MW
c) Tala = 1020 MW. surplus power generated from the hydropower projects is exported to India.

- Punatsangchhu-1 the largest hydro power project between India & Bhutan.

- it has already generated 1395 million units, exceeding the generation forecast of 1328 units & earning gross revenue of Nu.2012 billion ($52 million).

- the project is estimated to generate 4.8 units per year.