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Jul 1
Bhutan government will endorse ""Bhutan Sustainable Hydropower Development Policy."
To meet the growing domestic energy needs, Bhutan government has planned to build hydro-power projects of different capacities around the country. With this aim in mind, the Bhutan cabinet is going to endorse the “Bhutan Sustainable Hydropower Development Policy” this week. This policy will allow private companies and foreign companies to develop hydro-power projects. The projects are divided into three categories:  medium (25-150 MW), large (150-1000 MW), mega (beyond 1000 MW). The investment will be made on the basis of Build, Own, Operate, and Transfer (BOOT) for 30 years.

Kuensel Online reports:

The medium projects will allow joint ventures between Bhutanese and foreign partners, with a minimum 26 percent equity by the Bhutanese partner. Full ownership will also be allowed for Bhutanese nationals. No foreign investor will be allowed to enter into joint venture beyond five projects.

The large projects allow for 100 percent ownership by foreign companies or even Bhutanese-foreign joint ventures. Here again, an investment by any company will be restricted to three projects with a total installed capacity of 2,000 MW.

hydropower 

For mega projects, there will be bilateral model. If bilateral model cannot be applied then private and foreign investment will be considered.

The bidding process will be on the basis of upfront fee and royalty. In the first 12 years, government will receive 12% of the electricity produced and 18% after that till the project finishes.

Related article:
Kuensel Online

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