The Bhutanese Leading the way.
The implementation of the 600 MW Khorlochhu project got a big booston 10 January 2025 with Druk Green Power Corporation (DGPC) and Tata Power Company Limited (TPC), the two Shareholders in the strategic partnership, holding their first extra-ordinary general and board meetings of the joint venture company, Khorlochhu Hydro Power Ltd (KHPL), at Trashi Yangtse.
The two Shareholders approved the appointment of the Chief Executive Officer, the Chief Finance Officer and other key personnel for the project.
Most importantly, the KHPL Board approved the formal signing of contracts for the dam and power house that had long been stranded.
The Board also approved the award of the contract for the supply of aggregates and crushed sand.
On the sidelines of the EGM and the Board meeting, the KHPL management signed three major civil works contracts with M/s Jaiprakash Associates Limited (JAL) and M/s Construction Development Corporation Limited (CDCL).
The dam package contract was signed with JAL for Nu. 9,720 million. The main power house package contract was also signed with JAL for Nu. 4,999 million. In keeping with the understanding reached at the time when the project implementation was envisaged, the contract for the 20% of the power house works amounting the Nu. 1,211 mn was segregated from the JAL scope and the contract signed with CDCL.
A Nu. 873 million contract for the supply of aggregates and crushed sand was further signed with the State Mining Corporation of Bhutan.
The four contracts that were signed on 10 January 2025 aggregated to Nu. 16,803 million.
The Shareholders and the Board visited the project site on 9 January 2025 and noted that the JAL and CDCL were already mobilized at site and had started preparatory works for the construction of the major components of the dam, power house and the head race tunnel.
The contracts for the HRT works worth Nu. 4,346 million had already been awarded back in 2021.
Since much of the preparatory works had already been completed and the contractors could immediately start the construction works, the Shareholders and the Board asked the contractors and the management to consult on the construction schedules so as to complete the project as the earliest.
The management was also directed to expedite appointment of the design and project management consultants and the award of the contracts for the electro-mechanical and hydro-mechanical works.
The project, with a projected cost to completion about Nu. 69 billion is slated for commissioning by 2029.
On commissioning, the project will generate some 2,524 MU annually. While Bhutan will use much of the energy generated during the winter months, the summer surplus offtake arrangement had been made with Tata Power Trading Company Limited, a subsidiary of TPC.
DGPC and TPC have also started initial consultations for the implementation of the 1,125 MW Dorjilung project.
