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The first phase of three small hydropower projects – the 32 MW Yungichhu hydropower project in Longsi district, the 54 MW Burgangchhu hydropower project in Nangal district and the 18 MW Suchhu hydropower project in Sambhakar in Haa province – are expected to be commissioned in the first half of next year.
The Bhutan Green Power Corporation (DGPC) has announced that the 18MW Suchhu project will be completed in the next two to three months. The 32MW Yungichhu and 54MW Burgangchhu projects are expected to be completed in the first half of next year.
The three projects will contribute a total of 104MW of power generation and are expected to generate 494 million units (MU) of energy per year. The projects are scheduled to operate until fiscal year 2025 and the total cost is estimated to be around Ngultrum 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 construction.
DGPC officials said the construction firms were selected through a bidding process to carry out the tunnel and underground works.
The second phase of the hydropower project includes the 90MW Jomori Hydropower Project, the 54MW Gamri Hydropower Project, the 26MW Druk Bindu Phase I and II Hydropower Project and the 25MW Begana Hydropower Project at an estimated cost of about N20 billion.DGPC officials mentioned that for the second phase, contractors will have to bid for these bigger projects due to the increase in size and complexity of the projects.
However, for smaller projects like the 25MW Begana and 26MW Druk Bindu, new contractors are being invited to participate.
“For the second phase, about eight new contractors have shown interest and will go through a bidding process and only two contractors will be selected to build the two projects,” an official said.
The official also said that new contractors will be invited to participate in the project construction in the third phase to enhance the capacity of Bhutanese contractors to undertake larger projects.
The estimated construction cost of the first and second phases of these small hydropower projects is over N30 billion.
The official said the DGPC, which is using its small reserves as equity, is seeking loans from domestic and foreign financial institutions.
The official also mentioned that the tenders for the second phase have been received and the DGPC will place orders for the civil works by August. Except for Begana, the construction is expected to start in October as the clearing process will take more time.
The DGPC is also preparing a detailed project report for the third phase, which includes 33MW Parochhu, 85MW Gamri II, 24MW Yurmochhu, 33MW Sherichhu and 64MW Jigmechhu.
Depending on the progress of the second phase, the DGPC will initiate the third phase, an official said.
The fourth phase includes the 170MW Dangchhu project, the 363MW Komachhu project and the 237MW Jontang project.
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