January 2010
LOOKING FORWARD TO 2010
The year 2009 has come to a close.
We started 2009 with a lot of hope – it was to be the year of bonding amongst the various hydropower plants that were placed under DGPC since 2008. DGPC implemented the Performance Linked Incentive Scheme and the Employee Appraisal System which were aimed at team building while continuing to stress on the efforts of the individual. And we have made huge strides in both the initiatives. Even with having to amalgamate the huge 1,020 MW Tala Hydroelectric Project to DGPC in April 2009, DGPC today can be proud that it is a well integrated company comprising of individuals and teams that identify themselves with DGPC’s priorities and mandates. All of us have a sense of belonging and are proud to be a member of DGPC. This will stand us in good stead as we now face the many challenges ahead of us.
DGPC is one year older and it has also grown in experience and expertise. DGPC faced and dealt with the many problems ensuing Cyclone Aila. No efforts were spared to ensure that the generating units were made available following the damages from Cyclone Aila before the onset of the monsoons. The construction of the Dagachhu Hydroelectric Project was given top priority. Despite repeated floods, the Dagachhu project construction could be started from October 2009.
DGPC faced a number of natural disasters thereafter also. In the July 2009 floods, seven young boys lost their lives to the Wangchhu below the Chhukha dam. An employee of DGPC died at Kurichhu in the immediate aftermath of the 21st September 2009 earthquake that hit eastern Bhutan. While we grieve the loss of so many innocent lives, DGPC has come out of these experiences a little wiser and stronger, and these events have prepared us better for dealing with such disasters much more effectively in future. In the relief efforts, DGPC made its resources to the disaster management initiatives of the government. Individuals also contributed generously to His Majesty Relief Fund. As a direct outcome of the disasters we faced in 2009, DGPC will be setting up Disaster Management Units in each of its plants, which will also provide services to the areas in the immediate vicinity of the plants as a part of DGPC’s corporate social responsibilities.
Despite the recent phenomenon of a hydrology that is becoming increasingly difficult to forecast in the Himalayas, the late 2009 monsoons that went through faster than normal years, and some of the teething problems that continued to beleaguer DGPC at the Tala project, DGPC has managed to match or better its earlier performances in terms of energy generation and revenues for the year 2009, notwithstanding the higher than expected domestic energy consumption. This has been possible only because of the tremendous efforts made by the plants to maximize availability of the plants, minimize water spillage, and optimize generation of the units. DGPC also prudently diversified and invested its funds thus maximizing the earnings from these funds. It has therefore been a good 2009 for DGPC albeit our bleak anticipation for the year at the time of review midway through the year.
As we look forward to 2010, we have declared it the year of “gaining confidence and taking initiatives”. The development of our human resources will be critical for the future success and the sustenance of DGPC. While we are a young team, we have a lot of expertise and experience from our various plants which we need to now consolidate. We need to infuse confidence into our young employees and give them the necessary backstopping through internal or external resources as may be required. We need our senior employees and management team to take initiatives and assume leadership roles to help DGPC achieve its many mandates. The younger lot needs to actively participate and learn quickly to fill the huge voids in the organization. We have therefore prioritized capacity building of our employees in 2010 and will continue to give human capital building priority into the foreseeable future.
DGPC is one of the fastest growing companies in Bhutan and we do not expect the pace to slacken. We indeed are faced with a situation where the power sector is growing so fast that we may not be able to keep up with the developments. Recruitment of young engineers and managers, and training and integrating them within DGPC shall be given priority so as to keep pace with the rapid growth in the power sector.
DGPC is already the lead partner in the construction of the 114 MW Dagachhu Hydroelectric Project and many of our young and experienced engineers and managers have been deputed to this very important project. The success of the Dagachhu project will be critical in assessing the capabilities of the DGPC in managing future project construction activities. DGPC has also initiated the preparation of the Detailed Project Reports for the 208 MW Nikachhu project and the Toktogom Diversion Scheme into the Tala dam. DGPC intends to build a very strong design, engineering and project construction and monitoring capability within the organization at the earliest. If required due to the Bhutanese private sector not filling the space, DGPC intends to also venture into construction activities after 2012 but this would be for a limited period only with DGPC relinquishing its interests in such a construction entity as soon as possible.
Apart from these projects which DGPC will be directly undertaking, DGPC is expected to play a key role in the construction of the projects under the 10,000 MW by 2020 initiative of the Royal Government of Bhutan to be assisted by the Government of India. While DGPC’s involvement in these projects will be restricted in those projects that will be implemented under the inter-governmental model, DGPC is expected to represent the Royal Government in the projects under the joint venture model. The joint venture model projects could have installed capacity of over 2,300 MW. DGPC would also have to build its capacity to take over the projects under the inter-governmental model once commissioned for operation and maintenance.
DGPC is already well established in the operation and maintenance aspects of hydropower projects. However, we need to benchmark ourselves to best practices. Towards this, we are initiating a program to benchmark DGPC to the best in the world during 2010 and implement measures to move us towards those targets. We will also be establishing three Centers of Excellence and a Reclamation Center (to be later upgraded to undertake research and development) starting 2010 to minimize the high dependence of the DGPC plants on original manufacturers of equipment for critically sensitive operation and maintenance activities.
The Royal Government of Bhutan, the Druk Holding & Investments and the DGPC Board have been highly appreciative of the performance of the company, and have also supported and endorsed the many new initiatives that DGPC is undertaking. While being supportive, there is also pressure from all quarters for DGPC to grow faster so that it can achieve its many mandates, chief amongst them being the operation and maintenance of the existing plants, playing a key role in accelerating hydropower development in Bhutan, capacity building in hydropower, and ensuring domestic energy security. As human resources is going to play a critical role in DGPC’s endeavour to fulfill its mandates, the DHI and the Board approved during 2009 additional pay and allowances for DGPC and also a fresh Service Manual. While it is not always possible to satisfy every category of employees through such interventions, in general, DGPC is far better off in terms of pay and allowances today than what it was when DGPC was formed in 2008. The management will continue to work towards improving the working environment and try to sort out any anomalies as far as possible.
We have a lot to look forward to. DGPC is provided with all the opportunities for improvement, growth and more importantly to play a vital role in accelerating hydropower development in Bhutan. Hydropower sector will play a crucial role in achieving Gross National Happiness for the people of Bhutan, and we are lucky to be part of that critical team which can make it all happen.
On the part of the management and the other employees of DGPC, I would like to request that we all work together as a team, and contribute to the best of our abilities as individuals to make the team productive. Let us all work to make 2010 a successful and a memorable year for each and every individual employee of DGPC, the company, the Board, the shareholders, and the people of Bhutan.