The 600-megawatt Khorlochhu Hydro Power Project took a major step forward with the signing of four contracts worth Nu 16.8bn on 10th January. The contracts will cover the construction of a dam and powerhouse. The two main shareholders, Druk Green Power Corporation and Tata Power Company Limited, also held their first general and board meetings in Trashi Yangtse, appointing the project’s Chief Executive Officer and other key personnel.
During the meeting, the project management also signed three major civil work contracts with Jaiprakash Associate Limited and Construction Development Corporation Limited, CDCL.
Jaiprakash Associate Limited was awarded the dam construction worth Nu 9.7bn while the powerhouse contract worth Nu 4.9bn was shared between Jaiprakash Associate Limited and CDCL. As per the understanding, 20 per cent of the powerhouse works amounting to Nu 1.2bn was awarded to CDCL.
In addition, the project also signed a contract with the State Mining Corporation of Bhutan to supply sand and aggregates worth Nu 873 M.
Meanwhile, Jaiprakash Associate Limited and CDCL have already mobilized preparatory work for the construction of major components, including the dam, powerhouse, and headrace tunnel.
The contract for the headrace tunnel work worth Nu 4.3bn was awarded in 2021.
The shareholders and board members instructed the contractors and project management to finalise the construction schedule and prioritise early completion of the project.
They also directed the management to expedite the appointment of the design and project management consultant and the awarding of contracts for electro-mechanical and hydro-mechanical works.
The project, with an estimated cost of Nu 69bn is scheduled for completion and commissioning by 2029.
Once completed, the project is expected to generate 2,524 million units of electricity annually. While Bhutan will utilise most of the energy during the winter months, the surplus generated in the summer will be exported through Tata Power Trading Company Limited.
The Khorlochu project development is aligned with Bhutan’s strategic vision in achieving an additional generation capacity of 15,000 Megawatts hydropower and 5,000 megawatts solar by 2040.
Meanwhile, DGPC and Tata Power Company have initiated preliminary consultations for the implementation of the 1,125-megawatt Dorjilung Project
Sonam Darjay, Trashi Yangtse
Edited by Sonam Pem
