First phase of small hydro projects to be commissioned by mid-next year

Kuensel | Dechen Dolkar | July 23, 2024

The first phase of three small hydropower projects—comprising 32MW Yungichhu in Lhuntse, 54MW Burgangchhu in Nangkor, and 18MW Suchhu in Sangbaykha, Haa—is set to be commissioned by the first half of next year.

Druk Green Power Corporation (DGPC) has announced that the 18MW Suchhu project will be completed within the next two to three months. The 32MW Yungichhu and 54MW Burgangchhu projects are expected to be completed by the first half of next year.

Together, these three projects will contribute a total of 104MW and are expected to generate 494 million units (MU) of energy annually. With operations planned until the fiscal year 2025, the total cost for these projects is estimated at approximately Nu 9.2 billion.

Three local contractors—Construction Development Corporation Limited, Rigsar Construction Pvt Ltd., and Vajra Construction Companies—were involved in the first phase of the construction.

A DGPC official said that these construction companies were selected through a bidding process to handle the tunnelling and underground works. Phase II of the hydropower projects includes the 90MW Jomori, 54MW Gamri, 26MW Druk Bindu I & II, and 25MW Begana, with an estimated cost of around Nu 20 billion.

The DGPC official mentioned that for the second phase, due to the increased size and complexity of the projects, contractors would have to bid for these larger projects.

However, for smaller projects like the 25MW Begana and 26MW Druk Bindu, new contractors are being invited to participate.

“For the second phase, around eight new contractors have expressed interest and will go through a bidding process, with only two being selected for the construction of the two projects,” said an official.

The official also said that for the third phase, new contractors would be invited to participate in the project construction, to build the capacity of Bhutanese contractors for larger projects.

The estimated cost for constructing the first and second phases of these small hydropower projects is more than Nu 30 billion.

The official said DGPC was seeking loans from both domestic and international financial institutions. As equity, DGPC is utilising its small reserves.

The official also mentioned that for the second phase, bids have been received, and DGPC will place an order by August for civil works. Construction work is expected to start by October, except for Begana, as the clearance process is taking more time.

DGPC is also preparing Detailed Project Report for the third phase, which includes 33MW Parochhu, 85MW Gamri II, 24MW Yurmochhu, 33MW Sherichhu, and 64MW Jigmechhu.

An official said that depending on the progress of the second phase, DGPC would initiate the third phase. The fourth phase includes the 170MW Dangchhu, 363MW Komachhu, and 237MW Jonthang projects.

dzoDZ