The objective of this study is toanalyze the opportunities and strategic options available tothe Royal Government of Bhutan (RGoB) to implement thehydropower projects included in its power master plan. Itaccounts for the relevant legal, technical, environmental,social and financial issues, as well as Bhutan'soverall macroeconomic framework, and with full recognitionthat this resource is critical to Bhutan's economy. Thescope of the study is to: (i) review and understand theframework for the existing agreement between India andBhutan to finance the development of hydropower; (ii) reviewthe power sector master plan to determine thecompetitiveness of planned projects, and their chances ofbeing developed under a non-subsidized and/or privatefinance environment; (iii) review the options open to Bhutanin terms of power markets and trading; and (iv) propose someoptions for hydropower development in the medium to long term.
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