FAQ
What is PHPA-II?
Punatsangchhu-II is a 1,020 MW hydroelectric project on the Punatsangchhu river in Wangdue Phodrang dzongkhag. Construction began in 2010; the project was commissioned in December 2024 after multi-decade delays driven principally by geological-instability issues at the dam site. Per the FY 2024–25 RAA Annual Audit Report, PHPA-II concentrates 78% of the country's total reported audit irregularities.
PHPA-II finally exports at Nu 5.10 a unit — rising to a levelised Nu 5.67 over its 35-year power-purchase agreement, signed in May 2026. Its bigger sister, PHPA-I (1,200 MW), broke ground in 2008 and remains uncommissioned.
The full story of the twin dams — the delays, the ~Nu 94 billion cost, the audit findings, the tariff, and the ten-project pipeline betting the same model works better next time — is in The Punatsangchhu Problem. The delay arithmetic is Paradox #3; the audit concentration is Paradox #65.