Druk Hydro Energy Limited (DHyE) awarded two main contracts for hydro-mechanical works to Bhutan Hydropower Services Limited (BHSL). Both are subsidiary companies of Druk Green Power Corporation Limited (DGPC).

The contract agreements cover the Design, Manufacture, Supply, Testing, Installation and Commissioning of Hydro-Mechanical Equipment for the 54 MW Gamri-I & Bamukparongchhu Integrated Hydropower Project (GHMP) valued at approximately Nu. 2,073 million and for the 90 MW Jomori Hydropower Project (JHMP) valued at over Nu. 1,256 million. The Gamri & Bamukparongchhu H&M works are to be completed by July 2028 while the Jomori H&M works are to be completed by November 2028.

Dasho Karma Y. Raydi, Chairman of Druk Holding & Investments Ltd. (DHI) graced the signing ceremony held at DGPC Corporate Office.

The construction of the civil structures such as the dams, tunnels and powerhouses at both these hydropower projects are progressing well through Bhutanese contractors.  While Vajra and Chimmi RD construction companies are taking up the civil works for the Gamri I & Bamukparongchhu project, Rigsar Construction and CDCL are engaged in the civil works for the Jomori project.

The award of the H&M works to BHSL marks another important milestone in the construction of the Phase-II of the small hydropower projects in Bhutan. This reflects the continued commitment to building domestic capabilities in the construction of major civil structures and manufacture & erection of H&M equipment for hydropower projects that will help support and sustain the development of Bhutan’s future energy infrastructure.

The Prime Minister of Bhutan Lyonchen Tshering Tobgay inaugurated the 18 MW Suchhu hydroelectric project on 15 May 2025. The public and local leaders of Sombaykha and Gakiling Gewogs, and senior officers from the Haa Dzongkhag administration, Ministry of Energy & Natural Resources, Druk Holding & Investments, Druk Green Power Corporation (DGPC) and its subsidiaries and other organizations attended the inauguration.

Built within a record time of 27 months at a cost of Nu. 2,556 million, the 18 MW Suchhu hydropower plant is the first of the small hydropower projects, as envisioned by His Majesty the King during the Covid-19 pandemic, to be commissioned and put on the grid.

As part of the first phase of the small hydropower projects, the 54 MW Burgangchhu under Zhemgang and 32 MW Yungichhu under Lhuntse are also expected to be commissioned by September 2025. These small projects are expected to improve the reliability of power supply in the remote areas of Bhutan, especially during natural calamities that could disrupt and disconnect such remote areas from the national grid.

Another major objective of these small hydropower projects was to build Bhutanese human resources and capacity in the hydropower sector. The Suchhu project was entirely designed and engineered and the construction managed by DGPC. The hydromechanical components were designed, manufactured and installed by Bhutan Hydropower Services. The SCADA system was designed, engineered and manufactured by Bhutan Automation Services. Support services were provided by the Hydropower Research & Development Centre. These entities are either subsidiary companies or units under DGPC.

The civil works and the water conductor system were taken up by a private Bhutanese construction company, Vajra Builders Pvt Ltd.

Only the electro-mechanical equipment had to be outsourced to an Indian manufacturer, Flovel Energy Pvt Ltd. Even in this, the erection and commissioning of the electro-mechanical equipment was outsourced to DGPC.

Lyonchen Tshering Tobgay said that the inauguration of the Suchhu project was a historic moment for Bhutan’s hydropower sector and that every Bhutanese engaged in the construction of the project should be proud of their achievement. With the Phase I projects almost completed, and with the experience and confidence gained, DGPC had already embarked on the construction of the Phase II projects; 54 MW Gamri, 90 MW Jomori, 26 MW Druk Bindu and the 25 MW Begana projects.

Dasho Chhewang Rinzin, Managing Director, DGPC mentioned that these small projects were also bringing about socio-economic development in these far-flung areas through economic activities and employment opportunities. The Phase I projects had been a turning point in DGPC’s outlook to developing hydropower projects with the on-the-job capacity building of its human resources and strengthening of its subsidiary companies and centers of excellences.

The public of Sombaykha and Gakiling thanked His Majesty the King and the Government for the Suchhu project and acknowledged that they had greatly benefited from the commercial opportunities during the construction phase. They also looked forward to a more reliable power supply to further foster the socio-economic development in their villages.

The 18 MW Suchhu project will generate over 75 MU annually. Connected to Damdum in Samtse, the summer surplus can be exported into the Indian Energy Exchange.