Nu 16.8 billion worth of contracts for dam and powerhouse construction awarded
The board of the 600 MW Khorlochhu Hydro Power Limited (KHPL) signed contracts worth Nu 16.8 billion for the construction of dam and powerhouse, with Jaiprakash Associates Limited (JAL) and Construction Development Corporation Limited (CDCL) during its first extraordinary general meeting in Trashiyangtse yesterday.
The project, a joint venture between Druk Green Power Corporation (DGPC) and Tata Power Company Limited (TPC), also finalised key appointments, including the Chief Executive Officer and Chief Finance Officer.
The board also approved the contract award for the supply of aggregates and crushed sand.
The secretary of the Ministry of Energy and Natural Resources (MoENR), Karma Tshering, said that three major civil works contracts were signed with JAL and CDCL.
JAL was awarded the dam construction contract for Nu 9.7 billion, while the powerhouse contract, valued at Nu 4.99 billion, was shared between JAL and CDCL.
CDCL was entrusted with 20 percent of the powerhouse works, worth Nu 1.2 billion, in line with the initial agreement to prioritise Bhutanese firms.
Additionally, the State Mining Corporation of Bhutan secured a Nu 873 million contract to supply aggregates and crushed sand.
These four contracts amounted to a total of Nu 16.8 billion.
On January 9 this year, the shareholders and board members visited the project site and noted that JAL and CDCL had already mobilised resources and commenced preparatory works for constructing the dam, powerhouse, and headrace tunnel.
Contracts for the headrace tunnel, valued at Nu 4.346 billion, were awarded in 2021.
The MoENR secretary said that much of the preparatory work had been completed, enabling contractors to begin construction immediately.
The shareholders and board instructed the contractors and management to finalise the construction schedule to ensure the completion of the project on time.
The board also directed the KHPL management to expedite the appointment of design and project management consultants and award contracts for the electro-mechanical and hydro-mechanical works.
With an estimated completion cost of Nu 69 billion, the project is slated for commissioning by 2029. Upon completion, it will generate approximately 2,524 MU annually.
While Bhutan will utilise most of the energy generated during winter, surplus energy produced in summer will be supplied to Tata Power Trading Company Limited, a subsidiary of TPC.
The Khorlochhu project aligns with Bhutan’s strategic vision of achieving an additional 15,000 MW of hydropower and 5,000 MW of solar power generation capacity by 2040.
DGPC and TPC have also begun initial consultations for the implementation of the 1,125 MW Dorjilung hydropower project.
