“Growing from Within” – Theme for the year 2011

With the ending of the year 2010, Druk Green Power Corporation Limited (DGPCL) has successfully completed three year of its journey in operating, managing, and developing the hydropower sector in Bhutan. In these three years, not only did the amalgamation of the Chhukha, Kurichhu and the Basochhu hydropower plants go smoothly, Druk Green was able to successfully take over 1020 MW Tala Hydropower project, one of the largest hydropower plants in the region, under its wings in April 2009. Today, all the four generating hydropower projects are managed by young, but experienced and confident, Bhutanese engineers and managers. Druk Green had succeeded in grooming our young officers to take on the responsibilities of operating and maintaining our hydropower plants, and I must say that this is a huge achievement in itself for Druk Green.

 Apart from the responsibility of operation and maintenance of the hydropower plants, DGruk Green has also undertaken a huge mandate of accelerating the hydropower development in Bhutan especially the initiative of harnessing 10,000 MW by 2020. Druk Green has already completed a number of pre-feasibility and feasibility level studies of medium to large hydropower projects that it intends to develop on its own and for the first time in Bhutan, Druk Green has also taken a lead role in the construction of a hydropower project.  

With the time, Druk Green has also been able to strengthen itself in the field of operation and maintenance of hydropower sector and had managed to fulfill all its mandates.Performance-based systems were implemented, which have  greatly enhanced the performance of its employees and has contributed to the more efficient management of its human resources and its assets. Asides, a number of Memorandum of Understanding signed with both the abroad and in-country universities and colleges has facilitate the employees to acquaint with the required skills and knowledge.

Druk Green has also build its own center of excellence, which would contribute towards fulfilling the shortage of experts and reduce the dependence on the outside expertise. Three center of excellence were completed in 2010 and more center of excellence would be established in future too.

Druk Green had also faced with numerous challenges. With growing domestic consumption of electricity and the regulated domestic generation tariffs, Druk Green has a negative growth in its revenues. Druk Green also faced with a number of initial problems with the Tala Hydropower Plant that are now getting stabilized but investments have to be made to implement remedial measures. However, At the present stage, Druk Green have a very sound financial footings and human resources capacity, which are growing at a very fast rate to meet the future challenges.

As we look forward to 2011, Druk Green has declared it the year of “Growing from Within”. This is so that the officers begin to understand their own capabilities and strengths, and to nurture and put them to good use both for themselves and for the company.

 Human Resource has always been a top priority for the company and Druk Green will continue to invest into its human resources in terms of trainings, attachments, specializations, and pursuing higher studies in relevant fields’ in order to develop the in-house capacities from conceptualization to construction and commissioning of hydropower projects. Druk Green will also be benchmarking its operations to regional and international levels as it continues to ratchet its performance-based system’s targets.

 The most effective way to gain experience and expertise is for Druk Green to adopt a hands-on policy and undertake the actual construction works of its projects. Moving on from the construction of the Dagachhu Hydroelectric Projects, Druk Green has plans to start the construction of the 210 MW Nikachhu Hydroelectric Project and also initiate other projects as may be allocated by the Government to Druk Green. After the success of the diversion schemes for the Chhukha Hydropower Plant, Druk Green plans to take up the diversion of the Tsibjalumchhu stream to the Tala dam. Druk Green has also already acquired substantial experience in undertaking pre-feasibility and feasibility studies, and the emphasis now will be to acquire expertise in design and engineering at the Detailed Project Report level and for construction purposes.

 Aside, Through public private partnership (PPP), Druk Green intends to set up a runner reclamation centre at Gelephu and also take part in a PPP for establishing a hydropower construction company. These ventures will not only strengthen Druk Green but will help develop the private sector in keeping with the mandates of the Shareholder and the commitment of the Government. But the most immediate challenge ahead of Druk Green will be to implement an equitable remuneration and incentive schemes that are competitive, market based, and take into consideration working conditions and hours if Druk Green is to continue to attract the brightest and the best human resources from the market.

 With growing domestic consumption, Bhutan is looking at a looming power shortage during the winter months starting 2011-2012 when the rivers in Bhutan are at their lowest discharges. One of the mandates of Druk Green is to ensure domestic energy security. The Department of Energy is leading the way in finding a viable alternative to ensure that Bhutan does not have to resort to load shedding. Druk Green will have to play a critical role in this and consideration for tapping other more expensive renewable energy resources like solar and wind power are very much on the table, which could further eat into the revenues of DGPC.

 From a majority shareholder in the Dagachhu project where DGruk Green has put in all its resources so that the project can be completed as per the record construction schedule of a little over three years allocated to the project, Druk Green will now have to venture into untested waters with the Joint Venture projects with the Government of India Public Sector Undertakings where Druk Green will hold 49% equity. As a minority shareholder in the JV projects, Druk Green will have to deal with the JV projects in a slightly different manner while trying to ensure that Druk Green’s mandates are fulfilled. Druk Greenwill also have to prepare itself to take over the balance of the 10,000 MW projects being built under the IG model for O&M.

  As one of the fastest growing companies and being technology driven, Druk Green has to ensure that it attracts the best officers at all levels to join Druk Green, grow with Druk Green, and contribute to the development of this very important sector. With the support and encouragement of the Board and the Shareholder, Druk Green is fast becoming the choice of many young graduates although unfortunately the many of the best still choose the civil service over the corporate sector. One of the major achievements of Druk Green today is that we have youngsters and parents alike enquiring of job opportunities with Druk Green and actually with many of them opting to join Druk Green. As a fast growing company, especially with the plans to add another 10,000 MW by 2020 in addition to the existing generation capacity of 1,480 MW, Druk Green would need to ensure that the trend continues. Druk Green is confident that if we can get the human resources and the right working conditions for our employees, all these challenges can be overcome.

It is thus about time for Druk Green to look further into its own institutions, to the younger lot and towards the lower rungs of the Company, for ideas, initiatives, innovations, and proposals as to how to make Druk Green grow into what we would all like to see – a Company that is modern, corruption free, effective, conscious of the environment, caters to the needs of the people and the Government of Bhutan, and delivers on all its mandates and more – ultimately to set the trends for others to emulate not only in Bhutan but beyond the borders of Bhutan – a Company that we can all be proud to be a part of.