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Two Indian companies win supply contracts

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Besides delivery of equipment, the Nu 11.4B deals include construction of transmission lines

Electro Mechanical Equipment Two Indian companies have been awarded contracts worth Nu 11.4B to supply electro mechanical equipment for the 720MW Mangdechu hydroelectric project in Trongsa and to construct transmission lines to evacuate power from the project.

The Mangdechu hydroelectric project authority (MHPA) awarded the contracts to Bharat Heavy Electricals ltd (BHEL) and Kalptaru Power Transmission Line ltd (KPTL) in Mumbai for Nu 5.9B and Nu 5.5B respectively on January 8.

The contract agreement between BHEL and MHPA is to be signed in three weeks, and Bhutan Power corporation (BPC), on behalf of MHPA, will sign the agreement with KPTL on January 14, project officials said.

Project officials said BHEL would supply equipment for the main plant and for other areas as well, while KTPL will construct the 400kv double corridor transmission lines between Mangdechu porthead yard and Jigmeling in Gelephu, which is about 85km.

Mangdechu’s managing director, AK Mishra, said awarding the supply and procurement of equipment for the project to BHEL was the cheapest option. “Otherwise we’ll have to tender out work for each purchase, which would have become costlier and taken time, in terms of coordination and finalization, etc.,” he said.

In accordance with the bilateral agreement between the two governments, the consultancy contract for the clean development management was also awarded to ITP Synergy ltd and RITES ltd to ensure registration of the project at UNFCCC for carbon credits benefit, project officials said.

The project’s status report until December 2012 states that all major civil and hydro-mechanical works were awarded to Jaiprakash Associates ltd, Gammon India ltd and PES engineers pvt ltd, under various packages since the beginning of last year.

The infrastructure work, according to project officials, was awarded to Bhutanese contractors, to enhance capacity building and exposure to various types of civil works.  About 22 Bhutanese contractors were awarded the infrastructure development work.

“With BPC, having been entrusted the execution of construction of power works, MHPA released an advance of Nu 340M for completion of work as per schedule,” states the report.

Apart from these developments, the report states that, with the acquisition of about 434 acres of land for the project, a total compensation of Nu 3.3M was deposited with the dzongkhag to be distributed to the affected landowners.

Project officials said, as part of their commitment towards uplifting the socio-economic conditions of the local community, they have upgraded the basic health unit, conducted land management campaigns, started a biogas project, did a rabies control programme, and established a semi-commercial poultry farm, among others.

Since the inception of the project in 2010, there are now 407 people working under various departments in MHPA, of which 352 were Bhutanese.

As of December 31 last year, Nu 3.705B was incurred by MHPA, including advances paid to contractors. Of Nu 8.162B requisitioned to the Indian government, Nu 3.705B was released so far. The total contract value awarded to major players such as Jaiprakash Associates ltd, Gammon India ltd., and PES engineers pvt. Ltd, stands at 14.981B.

Last month, local contractors deployed for civil works in Mangdechhu had issues with the authority after they were left unpaid for the works. One contractor even had to sent away his labourers. The project owed the contractors Nu 500M.

Managing director, AK Mishra, said they were expecting an additional Nu 1.5B budget for the project, over a span of three months, starting this month after which the existing dues payable to Bhutanese contractors would be paid.

Located on Mangdechu in Trongsa in central Bhutan, the 720MW hydroelectric project is expected to be completed by September 2017.

By Kinga Dema

2 Comments to “Two Indian companies win supply contracts”
  1. Opinion | January 10th, 2013 at 14:13:16

    BHEL has been involved with Bhutanese Hydro projects for long time now. But there is hardly any corporate responsibility shown to helping the society where they are working. There is something called 3BL that companies have to take care of. People, Planet and Profit. The first two has been neglected.

  2. Flow for Worship, Flow for Money: Water Wheels and Hydropower in Bhutan | SANDRP

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