April 25: According to the detailed project report for the 1095 Mega Watt Punatsangchu Hydroelectricity Project, several houses near the project site could be displaced when the construction begins.

Several acres of farmland in Heysothangka and the road in the area would be submerged under water when the dam is constructed. The 137-meter high dam will be constructed about eight and half kilometer downstream from the Wangdue Bridge along the Wangdue-Tsirang highway.

An Executive Engineer with the Department of Energy, Tashi Dorji, said the survey for construction of infrastructure such as roads and bridges has begun. The construction of the dam, tunnel and powerhouse is expected to begin next year. The project will be completed in 2015.

The project is being financed by the Indian government with 40% of the estimated cost as grant and the remaining 60% as loan at an interest rate of 10% per annum.