The Tangsibji Hydro Energy Limited was created as a fully owned subsidiary company of Druk Green in April 2014 to undertake the implementation of the 118 MW Nikachhu Hydropower Project, Trongsa, in central Bhutan. The project is estimated to cost Nu. 11.96 billion.
The Nikachhu hydropower project is the first project for which Druk Green not only prepared the feasibility report but also undertook the DPR preparations. This helped Druk Green build its competencies in project investigations, design and engineering, financing and ownership structuring and contracts management. With all the statutory clearances in place, the development of infrastructures such as roads and bridges and construction power supply has been started. The major contracts for the civil works and electro-mechanical works are expected to be started by the second part of 2015.
ADB is taking the lead to arrange the debt financing and it has committed USD 120.5 million for the implementation of the project. INR 2.5 billion and INR 1.03 billion will be loaned from the State Bank of India and EXIM Bank, respectively. A power purchase agreement has been entered into with PTC India Ltd.
About 70 percent of the infrastructure works have been completed, which include roads and colonies. The project duration is 48 months, and is expected to be completed by 2019.
A Pre-Feasibility Study (PFS) for the 210 MW Nikachhu Hydropower Project was carried out by Druk Green in 2010, pursuant to approval accorded by then Department of Energy (DoE) vide letter no. DoE/PCD/DGPC/2009/636 dated April 15, 2009.
The PFS study was upgraded to Feasibility Study (FS) level vide approval letter no. DoE/DGPC- I/2009-19/157 dated January 3, 2011 accorded by DoE: with DGPC approving the study in its 16th Board Meeting held on December 31, 2009. As per this scheme, an independent 210 MW Nikachhu Hydropower Project with its tail water discharging back into Nikachhu river upstream of the confluence of Nikachhu and Mangdechhu was studied.
However, to reduce geological risks and reduce social and environment impacts, other alternatives with the relocation of the Surge Shaft and Power House at Norbudoi with the tail water from Power House discharging into Mangdechhu reservoir was studied. The approval to conduct study on the new alternatives was accorded by DGPC Board during the 30th Board Meeting on October 11, 2011.
The final Feasibility Study Report was submitted on September 19, 2012 which envisaged a pure run-of-river scheme with an installed capacity of 115 MW and a mean annual generation of 475.00 GWh from Nikachhu Project and an additional generation of 324.27 GWh from 720 MW Mangdechhu Hydropower Project, for a total of 799.27 GWh from this scheme against the earlier 843.61 GWh from the independent 210 MW Nikachhu Hydropower Project.
The scheme with the tail water discharging into the reservoir of the Mangdechhu Project was found attractive enough to be taken up for preparation of the Detailed Project Report (DPR). The DPR of the project was taken up on April 08, 2013 and completed in September, 2013. Since the height of the Dam was increased to provide 4 hours peaking capacity, the final capacity of the Nikachhu Hydropower Project increased to 118 MW, with mean annual generation of 491.52 GWh from Nikachhu Power House and 323.77 GWh additional generation by Mangdechhu Power House on account of Nikachhu water.
The DPR of the 118 MW project was approved by DGPC in its 43rd Board Meeting held on September 26, 2013. On March 04, 2014, the Cabinet approved the DPR and implementation of the 118 MW Nikachhu Hydropower Project. The formal approval of the Royal Government was communicated by the Cabinet Secretariat vide letter no.C-3/28/328, dated March 20, 2014.
Tangsibji Hydro Energy Limited (THyE), a 100 % subsidiary company of Druk Green Power Corporation Limited was then incorporated on April 25, 2014 as a Special Purpose Vehicle (SPV) with registration No. U20140425TR0438 for the implementation of the 118 MW Nikachhu Hydropower Project.
The 1st Extraordinary General Meeting of the shareholder and the 1st Board Meeting of the Company was held on August 28, 2014: with THyE functioning from this date.
Tangsibji, Trongsa : Bhutan
Tel: +975 2 339619 (Thimphu)