Norwegian support to Energy Sector

Press Release

The Agreement between the Norwegian Agency for Development Cooperation (Norad) and the Royal Government of Bhutan regarding development cooperation on Institutional Cooperation between Bhutan’s Department of Hydropower and Power Systems (DHPS) and Norwegian Water Resources and Energy Directorate (NVE) for the project “Strengthening of the Energy Sector – Phase IV” and Bhutan’s Department of Geology Mines (DGM) and the Norwegian Geotechnical Institute for “Mitigation of Geo-hazards related to Hydropower-Phase IV” was signed on May 14th 2012 between Ms. Ann Ollestad, H.E. Ambassador, Royal  Norwegian Embassy and Mr. Karma Tshiteem, Secretary, Gross National Happiness Commission on behalf of the Royal Government of Bhutan. The Ambassador was in the kingdom also to attend Bhutan-Norway Annual consultation meeting.

A total financial grant of Nu. 288 million has been committed by the Norad to support the accelerated hydropower development program of the country, to increase the institutional capacity within the energy sector in Bhutan and to further mitigate geo-hazards associated with hydropower development. Since Phases I, II and III (2001-2011) of the cooperation have made substantial contributions to the development of the institutional capacity of the sectors, Phase IV will build on the past achievements with a view to prepare more hydropower projects for development as per the Hydropower Policy of the country and to manage risks, identify hazards and develop early warning systems for mitigating natural hazards threatening lives and property.

The project will be implemented over a span of three years (May 2012-April 2015).

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