28401. Export Price of Electricity in Bhutan: The Case of Mangdechhu Hydroelectric Project
- Author:
- Sangay Chophel
- Publication Date:
- 02-2016
- Content Type:
- Journal Article
- Journal:
- Journal of Bhutan Studies
- Institution:
- Centre for Bhutan & GNH Studies (CBS)
- Abstract:
- There has been substantial cost escalation on the ongoing hydropower projects in Bhutan, exerting pressure on already ballooning national debt. This has raised concerns on whether the benefits of hydropower projects outweigh the costs and on the preciseness of its costing. Based on data available in the detailed project reports and the agreement signed between India and Bhutan, this paper examines the financial viability of Mangdechhu project by employing two different methods: cost-plus method and financial cost-benefit analysis. The results show that cost-plus method undervalues the total cost of the project. The impact of changes in several parameters and cost overrun on tariff is also analyzed in this paper.
- Topic:
- Development, Economy, Exports, Electricity, Energy, and Hydropower
- Political Geography:
- South Asia and Bhutan