The technical assistance (TA) aims to support hydropower and other renewable energy resources development in Bhutan by providing assistance in (i) investment projects preparation; (ii) policy formulation and enabling environment development; and (iii) institutional capacity strengthening for the implementing agencies of the TA.
|Project Name||Promoting Clean Energy Development in Bhutan|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Governance and capacity development
Private sector development
|Sector / Subsector||
Energy - Energy sector development and institutional reform
|Gender Equity and Mainstreaming||No gender elements|
|Description||The technical assistance (TA) aims to support hydropower and other renewable energy resources development in Bhutan by providing assistance in (i) investment projects preparation; (ii) policy formulation and enabling environment development; and (iii) institutional capacity strengthening for the implementing agencies of the TA.|
|Project Rationale and Linkage to Country/Regional Strategy||Hydropower is the backbone of Bhutan''s economy, generating 99% of the country''s electricity supply, and accounting for 18% of total national revenue and 20% of gross domestic product in 2013. At present, only 5% of hydropower potential in Bhutan has been developed. The government recognizes hydropower''s central role in Bhutan''s development and set out in its Eleventh Five Year Plan to accelerate expansion of hydropower capacity. The excessive dependence on the single resource of hydropower imperils Bhutan''s energy security. Bhutan will, according to its Alternative Renewable Energy Policy (2013), develop alternative renewable energy resources to enhance energy security, alleviate overdependence on hydropower, reduce conventional fuels consumption and minimize greenhouse gas emissions. From the demand side, it is necessary to formulate a strategic national energy efficiency policy to promote the use of efficient technologies, processes, and products throughout the energy supply and consumption chains.|
|Impact||Enhanced clean and sustainable energy development in Bhutan.|
|Description of Outcome||Improved enabling environment for the development of hydropower and other renewable energy resources.|
|Progress Toward Outcome||Implementation is on track. A review mission was fielded in June 2016.|
|Description of Project Outputs||
1. Investment projects prepared.
2. Policy formulated and enabling environment developed.
3. Institutional capacity strengthened.
|Status of Implementation Progress (Outputs, Activities, and Issues)||Four consulting firms have been engaged by ADB to undertake distinct sets of activities: (i) Package 1: Prefeasibility Study of 3 Hydropower Projects; (ii) Package 2: Renewable Energy Master Plan; (iii) Package 3: Energy Efficiency Policy; and (iv) Package 4: Measurement, Reporting, and Verifications (MRV). Given the complexity of the TA, 3 individual consultants have been engaged to assist in project implementation.|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Bhutan government agencies, such as Ministry of Finance, Department of Renewable Energy and Department of Hydropower and Power Systems under the Ministry of Economic Affairs, and the National Environment Commission, have involved in identifying or conceptualizing the assistance. The donor of this grant, the Government of Norway has been consulted during the project design.|
|During Project Implementation|
|Consulting Services||The TA will be implemented over 3 years from the date of effectiveness. It will require 262.25 person-months of consulting services from both firms and individuals, comprising 183.25 person-months from international consultants and 79.00 person-months from national consultants. The consultants will have expertise in such areas as hydropower engineering; geology; hydrology; electromechanical design engineering; economic and financial analysis; renewable energy; energy efficiency; climate change; public private partnership; energy law, regulation and standards, environmental and social safeguards; project coordination; and project implementation. Due to the complexity of the assignments, four consulting firms will be engaged using the quality- and cost-based selection approach with a 90:10 quality cost weighting based on a full technical proposal. Individual consultants will be required for specialized and country-specific expertise. ADB will engage all consultants in accordance with its Guidelines on the Use of Consultants (2013, as amended from time to time).|
|Responsible ADB Officer||Zhang, Hongwei|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||Energy Division, SARD|
Department of Renewable Energy, Ministry of Economic Affairs
|Concept Clearance||13 Dec 2013|
|Approval||31 Mar 2014|
|Last Review Mission||-|
|Last PDS Update||06 Mar 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|31 Mar 2014||23 Apr 2014||23 Apr 2014||01 Apr 2017||30 Jun 2019||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|0.00||5,674,265.00||0.00||0.00||0.00||0.00||5,674,265.00||31 Mar 2014||4,092,456.10|
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Norway, Japan, ADB to Help Bhutan Manage its Energy, Water ResourcesThe Asian Development Bank (ADB) is working with the governments of Norway and Japan under two different projects to help Bhutan better manage its clean energy and water resources.