The second phase of four small hydropower projects, totaling 195 MW in capacity, is set to begin soon following the award of civil works contracts to contractors.
The projects included in this phase are the 90 MW Jomori, 54 MW Gamri-I, 26 MW Druk Bindu I & II, and 25 MW Begana.
The letters of award for the main civil works of the Jomori, Gamri-I, and Druk Bindu I & II projects were issued on December 5, 2024.
Druk Hydro Energy Limited (DHyE) signed contracts for the main civil works with the winning contractors on December 23, 2024. The contracts were formally endorsed by the DHyE Board at a meeting held yesterday.
DHyE, 100 percent subsidiary company of DGPC, is overseeing the implementation of these projects.
According to an official from DHyE, construction can commence immediately.
The contract for the main civil works for the 90 MW Jomori project were awarded in two packages with an aggregate contract value of Nu 3.556 billion.
The first civil works package, comprising mainly dam and part of the water conduction system, was awarded to Rigsar Construction Private Limited.
The official said that the second package comprising powerhouse and the balance part of the water-conducting system was awarded to the Construction Development Corporation Ltd.
The contract for the main civil works of the 54 MW Gamri-I project was also awarded in two packages with an aggregate contract value of Nu 2.675 billion.
The main Gamri project component was awarded to Vajra Builders Ltd while the Bamukparongchhu component was awarded to Chimmi RD Construction Ltd.
The contract for the main civil works of the 26 MW Druk Bindu I & II project was awarded to Penjor Construction Pvt. Ltd at a value of Nu 723 million.
The total value of the civil works contracts for the three projects amounts to Nu 7.955 billion.
The total estimated budget for the second phase of the small hydropower projects is Nu 20 billion.
The construction of access roads for Jomori and Druk Bindu I & II commenced in October 2023. Road access is now available to the major project components so that construction can start as soon as the main civil works packages are awarded.
Unlike the Jomori and Druk Bindu I & II projects, the Gamri-I and Begana projects do not require new road construction, as existing roads already provide access.
A detailed stability analysis for two sections of the water-conducting system, one near Tango Monastery and the other above Dodena Buddhist Institute for the Begana integrated multipurpose small hydropower project has been completed.
DGPC is currently seeking clearances from relevant agencies to initiate the project construction.
Although these projects were initially expected to start by October 2024, delays in finalising contracts pushed back the timeline.
The second-phase projects are expected to be completed within two and a half to four years.
“The first phase of small hydropower projects was highly successful, and the second phase aims to further enhance private sector capacity. Two new contractors have been inducted for the construction of Phase II,” said the official.
Bhutan plans to accelerate its renewable energy development, targeting an additional 20,000 MW of hydropower and solar generation capacity over the next 15 years.
The success of domestic contractors in these projects is expected to inspire more companies to engage in the implementation of future small, large, and mega projects, said the official. “The opportunities for participating in solar project development are also expanding rapidly.”
