Rangjung HPP: Assistance in Rehabilitation through Procurement of Spare Parts

Contract partner: GNHC / RGoB - Gross National Happiness Commission - Royal Government of BhutanCountry: Bhutan Funding amount: € 50.000,00Project start: 01.06.2006End: 31.07.2008

Short Description:

Overall goal

The Rangjung Hydro Power Plant (RHPP) is located in Eastern Bhutan, in the Trashigang Dzongkhag, about 16 km north of the main town. The hydropower scheme consists of one power station with two 1.1MW generator units. The plant was constructed with the assistance of the Austrian Development Cooperation and commissioned for operation in 1996. Since 2003, the Rangjung Hydro Power Plant has been facing several problems including the loss of SCADA system and intake communication, stator winding failure, damage of turbine controller card and failure of generator protection. Although some of these problems have been fixed by Bhutan Power Corporation Limited with the help of experts from the Region, the other remaining problems need to be fixed as well, in order for the plant to run on its full capacity. Therefore, the RGoB requested assistance from the Austrian side for procurement of certain spares, which are not available in the Region and for Austrian Technical Assistance for replacement of these parts and to provide on the job training to the operation and maintenance staff of Rangjung Hydropower Plant. All other necessary works, as well as those essential spares parts available in the Region, will be financed by the Bhutan Power Corporation (BPC) Limited.

The project will rehabilitate the Rangjung Hydropower Plant by replacing the necessary spares, by enhancing the engineering capabilities/skills of the assigned operational/maintenance staff and enable the presently trained/experienced staff of the Plant to act as trainers for new staff to be recruited in future.

The project is divided into three blocks A, B and C. Block A - Procurement and supply of necessary equipment by regional procurement, which will be financed by the Bhutan Power Corporation Limited, Block B - European procurement under ADA financial assistance (grant) and Block C -Training of the Operation and Maintenance Staff of Rangjung HPP under ADA financial assistance (grant).

project number1360-00/2006
source of fundingOEZA
sector Energiegewinnung /erneuerbare Energiequellen
  • Policy marker: are used to identify, assess and facilitate the monitoring of activities in support of policy objectives concerning gender equality, aid to environment, participatory development/good governance, trade development and reproductive, maternal, newborn and child health. Activities targeting the objectives of the Rio Conventions include the identification of biodiversity, climate change mitigation, climate change adaptation, and desertification.
    • 1= policy is a significant objective of the activity
    • 2= policy is the principal objective of the activity
  • Donor/ source of funding: The ADA is not only implementing projects and programmes of the Austrian Development Cooperation , but also projects funded from other sources and donors such as
    • AKF - Foreign Disaster Fund of the Austrian federal government
    • BMLFUW - Federal Ministry for Agriculture, Forestry, Environment and Water
    • EU - Funds of the European Commission
    • Others - various other donors are listed in ADA’s annual business report.
  • Type of Aid – Aid modalities: classifies transfers from the donor to the first recipient of funds such as budget support, core contributions and pooled programmes and funds to CSOs and multilateral organisations, project-type interventions, experts and other technical assistance, scholarships and student costs in donor countries, debt relief, administrative costs and other in-donor expenditures.
  • Purpose/ sector code: classifies the specific area of the recipient’s economic or social structure, funded by a bilateral contribution.
  • Tied/Untied: Untied aid is defined as loans and grants whose proceeds are fully and freely available to finance procurement from all OECD countries and substantially all developing countries. Transactions are considered tied unless the donor has, at the time of the aid offer, clearly specified a range of countries eligible for procurement which meets the tests for “untied” aid.