In response to recent challenges in Bhutan’s hydropower sector, Dawa Choden, Officiating Director General of the Department of Energy (DoE) under the Ministry of Energy and Natural Resources (MoENR), outlined the government’s comprehensive strategy to safeguard future projects and ensure the long-term safety of existing infrastructure. Speaking at the Meet-The-Press session on 28 November, she detailed the lessons learned from the Punatsangchhu II project and the measures now guiding a more cautious and disciplined approach to hydropower development.
Reflecting on the Punatsangchhu II project, which initially had an estimated cost of Nu 37.7 billion but escalated to Nu 93 billion, Dawa Choden explained that unforeseen geological challenges, such as unstable ground and landslides, as well as natural disasters like the Pelreychhu flood and the disruptions caused by the COVID-19 pandemic, contributed to delays and cost overruns. “The Punatsangchhu II project confronted a shear zone at the dam site and the collapse of the Downstream Surge Gallery crown, compounded by the Pelreychhu flood and the pandemic,” she said. “While these factors were largely beyond our control, they provided invaluable lessons that now underpin a safer and more rigorous approach to hydropower development, regardless of project scale.”
To prevent similar setbacks in the future, Bhutan has strengthened its hydropower development guidelines. Future feasibility studies are now based on extensive assessments of actual site conditions, with increased time and resources devoted to detailed geological and environmental investigations. “We are leaving no stone unturned,” Dawa Choden emphasized. “International experts and a dedicated Panel of Experts are engaged to conduct comprehensive due diligence before moving forward with any project.”
The government is also prioritizing strategic partnerships with globally experienced firms, leveraging their advanced technology and world-class project management systems. According to Dawa Choden, this approach enhances technical oversight, construction efficiency, and operational discipline, helping Bhutan to better manage risks, control costs, and deliver projects on schedule. Complementing this, independent designers and expert panels provide in-situ engineering solutions, optimize project designs, and enforce robust quality and cost control measures.
Modern governance mechanisms, including milestone-based contracting, digital monitoring, and clear risk-sharing frameworks, have also been adopted to ensure adherence to timelines, budgets, and the highest safety standards. From a financial perspective, Bhutan is increasingly using project-based non-recourse financing, which relies on project cash flows rather than government guarantees, promoting fiscal prudence while aligning developer incentives with project success.
A critical component of this strategy is upfront project viability assessment, which informs tariff structures and encourages efficient project execution. “By strengthening technical and financial oversight and improving site assessments, we aim to deliver hydropower projects that are safer, more efficient, and financially sustainable,” Dawa Choden said. “Our ultimate goal is to provide reliable electricity without overburdening the national economy, ensuring long-term energy security for Bhutan.”
Addressing concerns regarding the safety of the Punatsangchhu I dam, particularly recommendations to consider relocating it to an alternative site on the right bank, Dawa Choden reaffirmed the government’s commitment to long-term stability and public safety. Advanced engineering measures have been implemented to reinforce the dam’s right bank, including the removal of overburden along the national highway, construction of two-meter-diameter reinforced concrete piles, installation of high-capacity cable anchors, and the creation of drainage wells to manage groundwater levels. These measures are designed to strengthen slope stability and mitigate risks from climate change and potential flooding.
Future maintenance will be facilitated through a diversion tunnel, and hydraulic model studies conducted by India’s Central Water and Power Research Station (CWPRS) will inform the design of the stilling basin to withstand extreme weather events. An early warning system for glacial lake outburst floods (GLOFs) and continuous instrumentation to monitor the right bank slope are also being implemented. “Through a combination of engineering solutions, ongoing monitoring, and proactive risk management, we are committed to the long-term safety and stability of our hydropower infrastructure,” Dawa Choden said.
As Bhutan continues its hydropower expansion under the PSMP 2040, these measures reflect a firm commitment to responsible development, infrastructure safety, and environmental stewardship. The government’s approach aims to deliver reliable electricity, safeguard public and financial interests, and ensure the sustainability of Bhutan’s hydropower sector for generations to come.
Sherab Dorji
FromThimphu
