Bhutan - Strengthening of the Energy Sector (Phase III)

Client: Department of Energy (DoE), Bhutan

NVE Mandate: Institutional cooperation under the Contract between DoE and NVE, synchronized with Bhutan’s 5-year plan for economic development of the country.

Contract Value/ Duration: MNOK 9.653 (NVE portion) and MNOK 5.170 (DoE portion), both portions fully Norad financed. The current project covers the 3 year period May 2008 – June 2011.

Type of Activities: Institutional strengthening and human resources development within the electricity sector, particularly for regulation and hydro meteorological services; studies of effect of climate change on hydropower flows.

Work Completed 2010: Formal high level education (MSc) as well as skills training of staff through short-term interventions; strengthening of Bhutan Electricity Authority (BEA) and DoE’s Hydromet Services Division including implementation of Low-Flow Seminar in Thimphu in collaboration with UNICEF and regional partners in November.

Work in Progress 2010: Formal training (MSc) of Bhutanese civil servants is ongoing at several institutions worldwide as well as a series of initiatives aimed at institutional strengthening for development of energy sector; preparation for modelling of effects of climate change; management development in key areas; enhancing the DoE – NVE cooperation and coordination including hydrological data collection and analysis and the regulator BEA.

Activities and Outputs:
A Training Needs Assessment (TNA), the basis for the staff training programmes, was concluded by DoE during 2010. This ensures that training activities are linked to the relevant institutional and organizational development issues, including defined skills requirements.

Activities during 2010 included:

• Training and human resources development (various higher level education (MSc) and short term courses).
• Supporting improved regulatory capacity of BEA to meet challenges related to accelerated hydropower development, this was particularly important now that BEA has been delinked from the Department/Ministry. Support including training and project meetings both –in Bhutan and in Norway.
• Supporting DoE’s Hydromet Services Division on data provision for accelerated hydropower development, including holding of a seminar on Low-Flows in Thimphu in collaboration with UNICEF and regional partner institutions and procurement of vital equipment for hydrological measurement and sediment sampling and analysis. Training in hydrological analysis of Hydromet services Division (HMSD) employees at NVE headquarters in Norway. Training of HMSD and Druk Green Power Corporation (DGPC) employees in sediment sampling and analysis at NVE sediment laboratory in Norway. In addition, modelling of the effects of climate change on hydropower flows.
• NVE coordination and backstopping, including co-management of project in collaboration with DoE project management.
• Annual reports and consultation meetings.

Results/Outcome:
Several DoE professionals have completed MSc courses at foreign training universities and have returned to their duties in Bhutan with greatly increased competence. BEA has strengthened its capacity and, most importantly, became an autonomous authority on 1 January, 2010.

This is a strong indicator of improved institutional framework achieved as part of the project; - the project’s human resources development component has helped filling voids occurring as a result of the new organisation.

The Hydromet Services Division has increased its know-how and capacity with regard to all aspects of data management. The Division is now in a better position to provide inputs to the planning, design and operations of hydropower schemes.