Good News! Wangchu Hydro Power Project Stalled

I am encouraged by the news that the 570MW Wangchu HPP is stalled because of the unreasonable demand put forward by India’s Adani Group. I am encouraged for two reasons:

1. This clearly shows that our present breed of negotiating team is

        maturing and knows a lopsided deal when they see one; and

2. With this, I am hopeful that instead of the planned hydro power

        project, we can now consider doing the Wangchu Reservoir

        Project in its place.

No doubt there is an urgent need to upscale our energy production given the quantum jump in our domestic consumption. But why is it necessary that we have to take the hydroelectric route? The government is already on to the job – through the solar energy route. While we are aware that solar energy is not the solution to our long-term goals, this will do just fine as a stop-gap arrangement. While it will meet our immediate and urgent needs, even if at a higher per unit cost of production, it will give us time to choose and settle on a partner that is more reasonable and level headed than our current choice. For all the hoopla surrounding India’s Adani Group, clearly their astuteness falls far short of their overblown reputation.

For years I have been going hoarse crying out loud that we do the Wangchu Reservoir Project. Doing the Wangchu Reservoir Project has whole lot of advantages over doing the Wangchu Hydropower Project.

• It will feed the Tala and Chhukha projects downstream during the lean months. Water flow during the winter months is supposed to be so bad that it is rumored that last year we imported a whopping US$23.00 million worth of electricity from India. Imagine the shame!! – for a country who boasts of abundant/surplus energy.
• It will be an effective flood control and water management measure for the Bengali Babus downstream;
• It will create a water storage facility in the face of increasing water scarcity brought on by global warming. At some point soon, we will have to start to think of water storage – our traditional sources are drying up which is evident from water shortages reported across the country – both for drinking and irrigation; and
• It will be lot cheaper than doing the hydro project. May be even our own Bhutanese business houses can finance the project!

Let us not allow anyone to negotiate with us from a position of strength. We are looking for a partner – not a greedy marauder!