Despite persistent challenges, the Punatsangchhu-I Hydroelectric Project is approaching completion, with all major components—excluding the dam—nearing finalization, according to the Minister for Industry, Commerce and Employment, Hon. Namgay Dorji.
Addressing the media during the 16th Meet-the-Press session, the Minister noted, “All major project components, with the exception of the dam, are either completed or in the final stages. These include the headrace tunnel, powerhouse, erection of electro-mechanical equipment, and the transmission lines.”
However, the dam continues to pose a critical challenge due to geotechnical instability on the right bank hill slope. The Minister emphasized that both the Royal Government of Bhutan and the Government of India are collaborating closely to identify and implement long-term stabilization solutions to ensure the safety and viability of the dam and associated structures.
“The most recent bilateral technical meeting was held in Delhi on April 22, 2025. Following this, the Central Water Commission (CWC), the project’s principal designer, prepared a comprehensive stabilization report incorporating additional recommendations proposed by the Royal Government of Bhutan,” he stated. The report was submitted on June 2, 2025, and is currently under review by a technical team from the Ministry of Energy and Natural Resources (MoENR). Further actions will be guided by the team’s assessment.
In response to media queries on potential delays and cost escalations in future hydropower ventures, the Minister highlighted the inherent complexity of such projects. “Unlike conventional infrastructure, hydropower projects face site-specific geological and technical challenges that necessitate tailored engineering and design interventions,” he explained.
He underscored the importance of extensive site investigations—particularly subsurface assessments—in determining project feasibility and risk mitigation. “A key determinant of long-term success lies in the depth and accuracy of site-specific studies,” he noted.
The Minister further shared that Detailed Project Reports (DPRs) for most large-scale projects under the 20,000 MW initiative have either been completed or are in advanced stages. “Unlike in previous years, site accessibility is no longer a significant barrier. However, comprehensive subsurface investigations and environmental and social impact assessments remain critical and time-intensive,” he said.
To meet the national target for 2040, feasibility studies for additional hydropower projects are currently underway. All such studies adhere strictly to Bhutan’s Hydropower Development Guidelines.
The Minister also emphasized the importance of rigorous due diligence by all financing agencies and development partners prior to moving forward with project structuring or execution. “We are leveraging emerging technologies and engaging experienced experts to conduct in-depth technical and financial assessments. At this stage, we do not anticipate major changes to project sites or core engineering designs,” he added.
Meanwhile, the Punatsangchhu-I Hydroelectric Project Authority (PHPA-I), an autonomous body established to oversee the 1,200 MW Punatsangchhu-I Hydroelectric Project (PHEP-I), continues to lead the implementation of this landmark Indo-Bhutan Friendship Project. Construction commenced on November 11, 2008.
The run-of-the-river project is located along a 7–21 km stretch of the Wangdue-Tsirang National Highway in Wangduephodrang Dzongkhag, Western Bhutan. It is the first major initiative under the 10,000 MW Hydropower Development Initiative, jointly undertaken by the Royal Government of Bhutan and the Government of India. Designed to generate 5,670 million units of electricity annually, the project utilizes a 357-meter head across an 11 km section of the Punatsangchhu River. The dam site is situated approximately 7 km downstream from the Wangdue Bridge, with all other infrastructure located along the left bank of the river between 7 km and 21 km downstream.
Nidup Lhamo from Thimphu
