Contracts totaling Nu 16.8 billion have been inked by Khorlochhu Hydro Power Limited (KHPL) with Jaiprakash Associates Limited and Construction Development Corporation Limited for the building of a dam and powerhouse. In addition to finalizing important appointments, the project—a joint venture between Druk Green Power Corporation and Tata Power Company Limited—awarded contracts for crushed sand and aggregates.
While CDCL shared a powerhouse contract worth Nu 4.99 billion, JAL was awarded a dam building contract worth Nu 9.7 billion. CDCL received Nu 1.2 billion, or 20% of the powerhouse works. The State Mining Corporation of Bhutan was awarded a Nu 16.8 billion contract for crushed sand and aggregates. Contractors were able to start building right once after the dam, powerhouse, and headrace tunnel projects were finished in 2021.
With a projected completion cost of Nu 69 billion, the Khorlochhu hydropower project’s shareholders and board have directed contractors and management to complete the construction timetable. The project is anticipated to produce 2,524 MU per year and is in line with Bhutan’s strategic plan to create 5,000 MW of solar electricity and 15,000 MW of hydropower by 2040. By 2029, the project is expected to be put into service.
