ISSUE No. 5 April - June 2007

ISSUE No. 5 April - June 2007 MESSAGE FROM MD Dear Colleagues, THE BHUTAN POWER CORPORATION LIMITED NEWSLETTER BHUTAN POWER CORPORATION LIMITED COMPLETES FIVE YEARS SINCE INCORPORATION This Newsletter marks a milestone for BPC as the Corporation completes five years of incorporation since its inception in July, 2002. BPC has come a long way since then, with progressive performance of the Corporation and the Company making a profit for the first time during 2006. Crucial management tools like the Performance Management System (PMS), Performance Based Incentive System (PBIS) and the Corporate Strategic Plan (CSP) have also been successfully implemented. The last quarter was particularly a busy time for BPC with many interesting changes taking place. First and foremost, the PBIS 2007 has now been finalized and circulated to all the divisions and units. I hope that BPC will surpass the achievements of 2006 and break new grounds in the progressive growth through result oriented management. With five years behind our back, it was felt that both the Service Manual and the Corporate Strategic Plan needed revision. Both the documents were revised through extensive consultations with all stakeholders and have now been approved by the Board. The BPC Service Manual, now called BPC Service Rules and Regulation (SRR), will come into effect from July 1, 2007. The SRR brings more clarity to the rules and regulations based on the experiences gained over the past five years and will serve as a basis for a transparent and favorable work environment for all the employees. With the introduction of the guiding principles in the SRR, based on the concept of Fairness, Accountability, Transparency and Equal Opportunities (FATE) and the qualities of Customer Care, Integrity, Team Work and Efficiency & Effectiveness (CITE), I am positive that BPC will grow progressively with its human resources playing a very critical role as BPC strives to fulfill its many mandates. The CSP 2007 will guide the Corporation towards achieving its Vision with a clear set of Objectives. To make it relevant to changing times, there was a need to portray BPC as an organization with common Objectives rather than an organization with separate Objectives for the different Departments. As a result, the new CSP focuses on the Corporate-centric Objectives as opposed to Departmentcentric Objectives of the CSP 2003. The Vision remains the same albeit the separation into Vision and Mission. Besides achieving substantial progress and growth in its core business, BPC is also planning to diversify into other areas. A Memorandum of U- contd. on page 2 Bhutan Power Corporation Limited was incorporated on July 1, 2002. Five years hence, BPC is one of the biggest and leading Corporations in the country. The past five years has seen drastic operational and financial growth and improvement. BPC has also made remarkable stride in Human Resource Development and Management with strong short and long term training programs and innovative management tools such as CSP, PBIS and PMS covering the whole realm of corporate, group and individual performance management. With effect from July 1, 2007, BPC will be taking over of the Tala 400 kv Transmission Infrastructure, which is estimated to be worth Nu 2.75 billion from THPA. The formal handing taking over will take place on July 12, 2007. This would mean substantial increase in the BPC s asset base and revenues. It also brings BPC one step higher in the transmission system as BPC will for the first time own and operate a 400 kv system. BPC will also be entering officially into the ICT business with the issuance of the ICT Facilitator License by BICMA to be effective again from July 1, 2007. INSIDE BPC NEWS IN BRIEF 2 BPC PARTICIPATED IN THE 5 TH NATIONAL JOB FAIR 3 VOTER TRAINING & ELECTORAL EDUCATION FOR BPC EMPLOYEES UNDER THIMPHU DZONGKHAG BY ELECTION COMMISSION OF BHUTAN STATUS OF RURAL ELECTRIFICATION DURING 9 TH FYP 4 BPC SERVICE CENTERS 4 INAUGURATION OF 33/11kV, 5 MVA SUBSTATION & ESD OFFICE BUILDING IN SAMTSE TARIFF REVISION NOTIFICATION 5 CAPITAL BUDGET 5 PROGRESS REPORT: RURAL ELECTRIFICATION DEPARTMENT 6 GENERAL NOTIFICATION 6 EGAT OFFICIALS VISIT TO BHUTAN 7 THE MANAGING DIRECTOR OF BPC INVITED TO ATTEND THE ASIAN CLEAN ENERGY FORUM: REGIONAL POLICY AND FINANCE SOLUTIONS PRACTICAL TRAINING EMERGENCY RESTORATION SYSTEM BY TRANSMISSION DEPARTMENT MINISTRY OF INFORMATION AND COMMUNICATIONS & BHUTAN POWER CORPORATION LIMITED SIGNED A MEMORANDUM OF UNDERSTANDING ROLE OF SYSTEM COORDINATORS 8 SPORTS NEWS 8 Disclaimer: The content herein is for reference only. No part of this publication may be reproduced in any form without prior written permission of Bhutan Power Corporation Limited. BPC makes no warranty of representation, either express or implied, with respect to these notes, their quality or accuracy. In no event will BPC be liable for any direct, indirect, special, incidental or consequential damage resulting from any defect or inaccuracy in the papers or actions taken on the basis of these representations. For more information on BPC: visit www.bpc.com.bt 1 3 5 7 7 8

THE BHUTAN POWER CORPORATION LIMITED NEWSLETTER ISSUE No. 5 April - June 2007 contd. from page 1 nderstanding between BPC and the Ministry of Information and Communication (MOIC) has been recently signed to jointly undertake ICT Development in Bhutan. This event marks the entry of BPC into the field of ICT as the Corporation prepares to set up a subsidiary company to handle the ICT Infrastructure Facility Business. To meet BPC s social mandate for rural electrification, JBIC has recently approved the loan of USD 30 million for the rural electrification work of BPC. Negotiations are underway for USD 20 30 million of financing from the ADB to cover fund shortfalls for the 10 th FYP RE. BPC plans to electrify 24,256 households in the 10 th FYP as opposed to 15,000 households in the 9 th FYP. BPC is also self to take over the THPA s 400 kv Transmission Infrastructure from July 2007. Construction projects are going on in full swing to reach grid supply to all the Dzongkhags and to cater to the growing industries at the Pasakha Industrial Estate and Samtse. Power supply has already been made available to Raptenling Industrial Estate at SamdrupJongkhar. BPC is bustling with growth and development and I am very happy to be part of the BPC team. I urge every one of BPC employees to take on these challenges and opportunities to reach new heights and break new grounds. I congratulate everyone on the successful first five years as a Corporation and look forward to many more years of growth, innovation, and success of BPC. Tashi Delek Managing Director BPC ANNUAL REPORT 2006 BPC Annual Report 2006 has been published and circulated. A soft copy of report can be viewed in http://www.bpc.com.bt/ UTILITIES/bpcannualreport2006.pdf. Help us improve this newsletter. Send in your news, updates, articles and feedback to Sonam Jamtsho, HR&AD or email it to sonamjamtsho@bpc.com.bt BPC Newsletter is a quarterly newsletter published by BPC and updated electronically on the BPC website. BPC NEWS IN BRIEF BPC 4 th Annual General Meeting was held on March 30, 2007. Ms. Tshering Choden, Asst. Manager attached with Human Resources & Administration Department, Thimphu was awarded NUFFIC Scholarship to study Post Graduate Diploma (three months) in Management Control and Management Information System at the Maastricht School of Management, Netherlands from April 20 July 15, 2007. 8 BPC officials including Senior Manager/Managers/Engineers from BPC attended the conference on Asian Energy Week at Thailand from April 23 26, 2007. BPC participated in the 5 th National Job Fair conducted by the Ministry of Labour & Human Resources at Swimming Pool, Thimphu from April 28 29, 2007. BPC 22 nd Board Meeting was held on May 23, 2007. Mr. Pema Tshering, Deputy Manager attached with Engineering & Design Division joined the office after the completion of his two year (August 4, 2005 May 25, 2007) masters degree program in Information Technology & Communication Technologist from the Asian Institute of Technology, Thailand. Mr. Kamal Bdr. Gurung, Senior Engineer attached with Distribution & Customer Services Department joined office after the completion of his two year (August 4, 2005 May 25, 2007) masters degree program in Energy from the Asian Institute of Technology, Thailand. 2 Mr. Sunil Kumar Rasaily, Senior Engineer attached with Distribution & Customer Services Department joined office after the completion of his two year (July, 2005 May, 2007) masters degree program in Business Administration from the Asian Institute of Management, Philippines. Mr. Namgye Penjore, Senior Manager of Human Resources & Administration Department, Thimphu was awarded NUFFIC Scholarship to study Executive Program on Management of Change at the Maastricht School of Management, Netherlands from June 1 June 24, 2007. Mr. D.B. Chhetri, Senior Manager attached with Distribution & Customer Services Department, Thimphu was awarded International Centre for Hydropower (ICH) Funding to study Hydropower Development and Management at the ICH, Norway from June 4 June 21, 2007. A presentation on Broadband over Power Line (BPL) and its technology developed by MainNet Communications, Israel and different network solutions provided by BPL was made by its Indian counterpart Mr. Lalit K.Chandak, President of Span Broadband Services Pvt. Ltd, New Delhi, India on June 5, 2007 at BPC Conference Hall, Thimphu. BPC senior officials attended the presentation. The Managing Director of BPC will be attending The Asia Clean Energy Forum: Regional Policy and Finance Solutions to be held at ADB Headquarters in Manila, Philippines from June 26 28, 2007. BPC Board approved the BPC Service Rules and Regulation (SRR) 2007 which shall come in effect from July 1, 2007. BPC Board approved the Corporate Strategy Plan (CSP) 2007 and Performance Based Incentive System (PBIS) 2007. Mr. Gempo Jampel, Deputy Manager attached with Rural Electrification Department is awarded Asian Development Bank Government of Japan Scholarship Program (ADB) to study the masters degree program in Business Administration at the University of Hawaii, Manoa, USA commencing from August 6, 2007 till August 6, 2009. Mr. Tempa Dorji, Deputy Manager attached with Distribution Construction Section (West), Punakha under Rural Electrification Department is awarded Quota scheme for students from developing countries Fund (NTNU Fund) to study the masters degree program in Electric Power Engineering at the Norwegian University of Science and Technology (NTNU), Norway commencing from August 10, 2007 till August 10, 2009. Mr. Jigme Nidup, Manager attached with CMTD, Begana under Distribution & Customer Services Department is awarded Swedish Development Co-operation Agency Scholarship (SIDA) to study the masters degree program in Sustainable Energy Engineering at the Royale Institute of Technology (KTH), Stockholm, Sweden commencing from August 20, 2007 till August 20, 2009. BPC Telephone Directory 2007 is ready and the soft copy of the directory can be viewed in http://www.bpc.com.bt/aboutus/telephone/hq.html. For more information on BPC: visit www.bpc.com.bt 2

ISSUE No. 5 April - June 2007 THE BHUTAN POWER CORPORATION LIMITED NEWSLETTER BPC PARTICIPATED IN THE 5TH NATIONAL JOB FAIR BPC participated in the 5th National Job Fair conducted by the Ministry of Labour and Human Resources (MOLHR) at Swimming Pool, Thimphu from April 28 29, 2007. The Prime Minister Lyonpo Khandu Wangchuk inaugurated the job fair. Among those present were the other ministers and senior government officials. BPC has announced 48 vacancies (technical and non-technical) in the Kuensel as well as displayed during the job fair. A very good response was witnessed from the interested candidates. On the last day of the job fair, an interview was conducted for the posts of technician, (4 slots), masonry (1 slot), plumbing (1 slot), carpentry (1 slot) and electrical housewiring (1 slot) upon the request of MOLHR. 6 candidates were selected including 2 technicians based on the academic and VIVA marks. VOTER TRAINING & ELECTORAL EDUCATION FOR DZONGKHAG BY ELECTION COMMISSION OF BHUTAN BPC EMPLOYEES UNDER THIMPHU Three officials from Election Commission Of Bhutan (ECB) including the Chief Training Coordinator Mr. Ugyen Gongphel conducted Voter Training and Electoral Education for all BPC employees under Thimphu dzongkhag on May 18, 2007 at Royal Institute of Health Science, Thimphu. A total of 208 employees attended the training. The ECB officials briefed on the importance of election, explained the election process, clarified on the postal ballot and a live demonstration of Electoral Voting Machine (EVM) was shown. A Mock Election was also conducted for the employees using EVM. BPC employees under Thimphu dzongkhag Briefing on Electoral Process Heads of Departments/Divisions A Mock Election For more information on BPC: visit www.bpc.com.bt A live demonstration of EVM A Mock Election 3

THE BHUTAN POWER CORPORATION LIMITED NEWSLETTER ISSUE No. 5 April - June 2007 STATUS OF RURAL ELECTRICIFATION DURING 9 TH FYP 1 Approved by Department of Energy BPC SERVICE CENTERS There are 100 BPC Service Centers (SC) spread over length and breadth of the country. These Centers are manned with over 200 multi tasked employees, with defined responsibilities targeted towards better services to the 52,651 customers. To manage the Service Centers, BPC is purchasing 48 two wheelers, in addition to the privately owned scooters and 100 mobile phones. Pending the establishment of the Call Center, the core city of Thimphu and Phuentsholing could not be broken up into Service Centers. For more information on BPC: visit www.bpc.com.bt 4

THE BHUTAN POWER CORPORATION LIMITED NEWSLETTER ISSUE No. 5 April - June 2007 INAUGURATION OF 33/11kV, 5 MVA SUBSTATION & ESD OFFICE BUILDING IN SAMTSE The 5 MVA, 33/11 kv Substation and ESD Office Building in Samtse were inaugurated on March 31, 2007. Dasho Drangpon of Samtse High Court was the Chief Guest and other senior officials from the Dzongkhag Administration and armed forces were also present. M/s. Areva T&D is the turnkey contractor for the substation works and the cost to completion is Nu. 37 million. The Office building was contracted out to M/s. Jimba Construction at a cost of Nu. 1.7 million. With the completion of the substation, 33 kv supply from Gomtu is now made available in Samtse for better reliability and power adequacy. Chief Guest inaugurating the Control Room New ESD Office Building, Samtse 5 MVA, 33/11 kv Substation in Samtse Building TARIFF REVISION NOTIFICATION The Bhutan Electricity Authority (BEA) has approved a three year tariff revision for the period beginning July 1, 2007 to June 30, 2010. The first phase tariff revision is effective from July 1, 2007. All Customers are kindly requested to take note of the tariff revision. The existing minimum energy charges of Nu. 30 per month for single phase and Nu. 90 per month for three phase customers will be discontinued and billing will be based on actual consumption. Also there won t be any charges towards meter rent. The second and third phases of the revision of electricity tariff rates will be effective from July 1, 2008 and July 1, 2009 respectively. CAPITAL BUDGET From July 1, 2007 onwards From July 1, 2008 onwards From July 1, 2009 onwards For Low Voltage-Domestic Customers Energy Charge Nu./kWh Energy Charge Nu./kWh Energy Charge Nu./kWh Block I (Lifeline) Up to 80 kwh/month 0.75 0.75 0.75 Block II 81 to 300 kwh/month 1.25 1.35 1.40 Block III Above 301 kwh/month 1.55 1.70 1.85 For Low Voltage - Bulk Customers 1.55 1.70 1.85 For Medium Voltage Customers (33/11/6.6 kv) For High Voltage Customers (66 kv and Above) Energy Charge Nu./kWh Energy Charge Nu./kWh Energy Charge Nu./kWh 1.30 1.43 1.55 Demand Charges Nu./kW/Month Demand Charges Nu./kW/Month Demand Charges Nu./kW/Month 65 75 85 Energy Charge Nu./kWh Energy Charge Nu./kWh Energy Charge Nu./kWh 1.29 1.40 1.51 Demand Charges Nu./kW/Month Demand Charges Nu./kW/Month Demand Charges Nu./kW/Month 65 75 85 BPC has been spending a substantial portion of its resources on infrastructure expansion programs over the years keeping in line with the overall framework of electricity development plans and programs. For the financial year 2007, the capital budget will entail a cost of Nu. 1, 747.925 million to the Company. This outlay is 25% higher than the outlay of Nu. 1, 402.671 million kept during the budget year 2006. The greater portion of the capital projections, amounting to Nu. 1, 254.483 million which is 72% of the total capital commitment, will be funded through BPC s own internal resources. The balance amount of Nu. 493.442 million (28% of the outlay) will be received as grant money for Rural Electrification and Transmission expansion network system. Regarding the spread of the capital budget allocation, a larger portion of the budget amounting to Nu. 1, 176.144 million (67.3%) will be spent on constructing Transmission Network System and Nu. 417.175 million (23.86%) will be utilized on expansion of distribution net work system. The balance 9% of the allocation has been set aside for civil works and other capital purchases such as vehicles, furniture, computer, office equipments, purchase of land etc. On the utilization of the capital budget, the company has spent 72% of the total capital budget in 2006. This is a marked increase in the utilization of the capital budget as compared to the past years and is an indicative of the enhancement of the technical capability of the Corporation, and its institutional capacity to implement Projects. For the first quarter of the financial year 2007, the company has already spent Nu 270 million of its capital outlay. For more information on BPC: visit www.bpc.com.bt 5

THE BHUTAN POWER CORPORATION LIMITED NEWSLETTER ISSUE No. 5 April - June 2007 PROGRESS REPORT: RURAL ELECTRIFICATION DEPARTMENT I. Japan Bank for International Cooperation Rural Electrification Project A Loan Agreement between the Royal Government of Bhutan (RGOB) and the Japan Bank for International Cooperation (JBIC) was signed on May 9, 2007. This loan project is aimed at reaching grid electricity connection to about 15,322 rural households in the 10 targeted dzongkhags of Bumthang, Chukha, Dagana, Haa, Mongar, Paro, Samtse, Tashiyangtse, Trongsa and Tsirang. Following the Project Appraisal Mission from Japan during the beginning of this year, numerous checklists with deadlines were given for the project proponents to initiate and accomplish. In order to accomplish the targets, necessary ground works were initiated and strategies adopted by the Rural Electrification Department (RED). To start with, over 60 BPC linemen and supervisors were trained at Central Maintenance and Training Division, Begana on the use of GPS equipment in order to equip them to carry out the Low Voltage network survey. Immediately after the training, 16 groups of the trained manpower were dispatched to the fields starting from April 2007. While the survey works in the southern & central Dzongkhags of Chukha, Dagana, Haa, Paro, Samtse & Tsirang are almost completed, necessary arrangements are being made in the rest of the Dzongkhags of Trongsa, Bumthang, Mongar and Tashiyangtse by diverting the survey teams from those completed Dzongkhags. The entire survey works are scheduled for completion by July 31, 2007. With the signing of Loan Agreement between the RGOB and the JBIC, all required formalities such as forwarding the Legal Opinion on Loan Agreement and the Evidence of Authority and Specimen Signatures to JBIC in order to effectuate the Loan have been completed. Once this has been further strengthened and is in place after receiving acknowledgement from the JBIC, the RED shall immediately proceed with the hiring of the Consultancy Services in accordance with the JBIC Procurement Guidelines. II. Asian Development Bank IV Rural Electrification Project The Asian Development Bank (ADB) has given a Project Preparatory Technical Assistance (ADB PPTA) to the RGOB to cover the following three components: Component 1: Expansion of Rural Electrification (RE) Component 2: Integration of the Interregional National Transmission System Component 3: Acceleration of Hydropower Development While the Department of Energy will be the Implementing Agency (IA) for component 3, the other two components are to be handled by BPC as the IA. As far as the Rural Electrification Component is concerned, the PPTA is aimed at preparing the electrification of about 9,000 households in eight Dzongkhags of Wangdue, Punakha, Zhemgang, Sarpang, Lhuentse, Trashigang, Pemagatshel and Samdrupjongkhar. Mongar and Dagana Dzongkhags are also included due to the recent changes/transfer of some gewogs from Pemagatshel to Mongar and Sarpang to Dagana respectively. The works under the PPTA have already started with the procurement of consultancy services of the International Consultants. The Medium Voltage survey works have also started in the first week of June 2007 in the above-targeted Dzongkhags. BPC will be assisting the consultants in carrying out the survey works in order to have the ownership built in right from the beginning of the project. III. Additional Rural Electrification Works The RE works under the ADB-III, SDA-II, ACB-IV fundings have been completed physically except for ACB Phase-V in Trongsa and Bumthang Dzongkhags. About 100 households will be provided with electricity in Tang and Langthel gewogs of Bumthang and Trongsa dzongkhags respectively under the Austrian Grant Assistant (ACB-V), the project of which is scheduled for completion by December 2007. In addition, an approval has been received to take up RE to provide electricity to about 630 households by utilizing the materials from the past projects with additional fillings from BPC s own internal resources. The works under the additional scope include reaching a 33kV line from Chukha (Baikuenza) to Lhamoyzingkha, and fill-ins in the Dzongkhags of Bumthang (20 households), Chukha (12 households), Paro (12 households), Punakha (33 households), Samtse (94 households HH), Sarpang (191 households HH), Trashiyangtse (61 households), Trashigang (24 households) and Wangduephodrang (174 households). This additional scope of work is scheduled for completion by June 2008. GENERAL NOTIFICATION In order to enable BPC to keep a proper record of the company s photographs, all the departments and divisions are requested to send pictures related to any events (for instance handing/taking over, inaugurations, site visits and any important occasions) to the Company Secretary at passangdorji@bpc.com.bt and Sonam Jamtsho, HR&AD at sonamjamtsho@bpc.com.bt. For more information on BPC: visit www.bpc.com.bt 6

THE BHUTAN POWER CORPORATION LIMITED NEWSLETTER ISSUE No. 5 April - June 2007 EGAT OFFICIALS VISIT TO BHUTAN A delegation of officials from Electricity Generating Authority of Thailand (EGAT) headed by the Deputy Governor Mr. Vinit Tangnoi met with officials from the Bhutan Power Corporation Limited (BPC) in Thimphu on May 14, 2007. They discussed areas of sharing technical expertise, training and exchange programs on the leasing of optic ground wire, communication services, hotline maintenance and training and exchange programs. The delegation also called on the Minister of Ministry of Trade & Industry, Lyonpo Yeshey Zimba, who is the chairman of BPC s Board of Directors. THE MANAGING DIRECTOR OF BPC INVITED TO ATTEND THE ASIAN CLEAN ENERGY FORUM: REGIONAL POLICY AND FINANCE SOLUTIONS The Managing Director of BPC will be leaving for Manila, Philippines on invitation from Asian Development Bank (ADB) to attend The Asian Clean Energy Forum: Regional Policy and Finance Solutions to be held from June 26 28, June, 2007 at the ADB Headquarters. Jointly sponsored by ADB, the United States Agency for International Development (USAID) and the Asia Pacific Economic Cooperation (APEC), the forum aims to be a knowledge-sharing event on best practices in clean energy policy and regulation, financing and technology deployment. It also seeks to devise strategies and innovative approaches for scaling up clean energy investments in the Asia Pacific region. It will bring together a diverse group of 15 200 senior officials, managers and experts from governments, national and multinational banks, carbon and clean energy investment funds, project developers and service providers, academe, civil society, development partners and international organizations. Pre-conference seminars will kick off the event on June 25, 2007 which will include consultations on ADB s Draft Energy Strategy. A Clean Energy Investment Fair will be held concurrently on June 27, 2007 to display clean energy products. Post-conference workshops on June 29, 2007 will cover clean coal technologies and compact fluorescent lamps.. PRACTICAL TRAINING EMERGENCY RESTORATION SYSTEM BY TRANSMISSION DEPARTMENT Transmission Department (TD) has successfully carried out a Practical Training course on the use of Emergency Restoration System (ERS). The training, which was attended by 20 employees from TMD, Semtokha, Tsimalakha and Phuentsholing, was conducted on 66kV transmission line at tower location no. PC 95 in between Chukha Gedu from May 21 27, 2007 at Asinabari near the Phuentsholing Thimphu national highway. The main objective of the training was to develop a competent group of people who will be the key persons in erection of ERS structures in the transmission lines during the failure/collapse of tower or on emergencies so as to restore the power supply with minimum outage. After the erection of the ERS structure, the 66kV line was by-passed through the ERS structure for one night. Later, the line was removed and connected back to the existing tower. TD is planning to conduct the same training on 220kV tower sometime in October 2007. Stringing of conductors on ERS tower For more information on BPC: visit www.bpc.com.bt 7

THE BHUTAN POWER CORPORATION LIMITED NEWSLETTER ISSUE No. 5 April - June 2007 MINISTRY OF INFORMATION AND COMMUNICATIONS & BHUTAN POWER CORPORATION LIM- ITED SIGNED A MEMORANDUM OF UNDERSTANDING As per the directives of the Royal Government of Bhutan (RGOB), the Ministers of the Ministry of Information and Communications (MOIC) & the Ministry of Trade and Industry signed a Memorandum of Understanding (MOU) on behalf of the Ministry of information and Communications & Bhutan Power Corporation Limited (BPC) for laying of Optical Power Ground Wire (OPGW) and All Dielectric Self Supporting (ADSS) fiber optic cables on BPC s power transmission lines on May 30, 2007. The main purpose of signing the MOU is to meet the RGOB s objective of establishing a robust and reliable national ICT backbone infrastructure on a priority basis. The collaboration will avoid duplication of efforts, wherever possible, and ensure optimal utilization of the Government s limited resources, and facilitate affordable and easily accessible ICT services for Bhutanese consumers and the public at large. This would also lay the firm foundations for creating a knowledge-based society. Among others, the MOU also included the following elements: i. MOIC will make a pragmatic plan to utilize the Universal Service Fund and other similar resources and provide the initial capital investment for procurement and installation of OPGW/ADSS and associated equipment on all new transmission lines. ii. BPC will operate and maintain OPGW/ADSS and associated equipment at a mutually agreed to annual charge. iii. BPC will replace OPGW/ADSS taking into account a mutually agreed to annual depreciation cost to be borne by the MOIC. iv. MOIC will lease OPGW/ADSS to ICT market players as per the terms and conditions prescribed by the Bhutan InfoComm & Media Authority, in accordance with the Bhutan Information, Communications and Media Act. The lease amount shall be deposited into the Universal Service Fund. v. The cost of Optical Line Terminating Equipment and associated accessories shall be borne by the lessee. vi. MOIC will provide BPC the required number of fiber cores for its internal use free of cost. ROLE OF SYSTEM COORDINATORS As per Article 39 of the Bhutan Electricity Act 2001, the Bhutan Electricity Authority (BEA) is required to designate a System Operator to operate and maintain the integrity of the National Power System. The functions of the System Operator primarily include the dispatch of generation, the coordination of transmission equipment outages and the monitoring of electricity imports and exports to maintain load and resource balance. The function of the System Operator has become crucial since Bhutan s electrical system has increased in complexity with the commissioning of Tala Hydroelectric Project (THP) and the rapid increase in the domestic industrial loads. Bhutan Power Corporation Limited (BPC), as the sole agency responsible for transmission and distribution of electrical power within the country, has been assigned with the function of the System Operator. BPC has indicated that it would be developing its institutional capacity including its human resources to perform the functions of the System Operator. To this end, BPC has instituted the function of the System Coordinator in order to develop the knowledge base as well as perform, on a trial basis, the coordination functions of what would, in future, be part of the primary functions of the System Operator. To date, System Coordinator has been primarily engaged in the collection of hourly data of significant parameters related to the operations of generating stations, transmission substations and exports & imports. In addition to familiarizing the System Coordinator with operations of the power system, these data are also expected to be used for operation and future planning of the transmission system as well as for the dispatch of the generation from Chhukha, Basochhu, Kurichhu and Tala and other major generating stations, when the System Coordinator is assigned with this task. For the present and in the immediate future, the System Coordinator is assigned with the task of establishment of an approved communication protocol with the generating companies and other regional electrical authorities such as Eastern Region Load Dispatch Center (ERLDC) to coordinate the operations of Bhutan s power system. With the inauguration of the National Load Dispatch Center (NLDC) expected in 2009 and with the approval from the BEA, the System Coordinator will assume the full functions of the System Operator which includes the following responsibilities: i. Coordinate the power supply system to obtain instantaneous balance between generation and consumption of electricity ii. Dispatching of generation installations iii. Coordinate transmission outages iv. Monitor the import and export of electricity v. Prepare forecast for generation requirements vi. Prepare regulations with approval of BEA for the dispatch of generation installations. vii. Perform such other functions as may be prescribed by the authority in the license or by regulation. A System Coordinator Operating Procedure was drafted to outline the principles, procedures and define the roles and responsibilities of System Coordinator. The System Coordinator s office is expected to be fully operational by October 2007. SPORTS NEWS BPC Traditional Archery Team won the Annual Jigme Dorji Wangchuck Memorial Archery Tournament 2007 defeating Ministry of Agriculture Team in two straight games in the final match on May 2, 2007. Shown in the picture is BPC Traditional Archery Team with the President of BAF, Lyonpo Dr. Kinzang Dorji after winning the Tournament. BPC Archery Team is among the 28 Archery Teams participating in the 2007 Coronation Archery Tournament on Compound Bow which started from June 2, 2007 at the Changlimithang ground, Thimphu. BPC is participating in this tournament for the fourth time. BPC won the pre quarter final match against the Ministry of Agriculture Team with a score of 25 20 and 25 2 in two straight sets comprising of 17 rounds on June 20, 2007. BPC will be playing against the Ministry of Health Team in the quarter finals to be held on June 24, 2007. For more information on BPC: visit www.bpc.com.bt 8