ANDRITZ bags electro-mechanical contract for Bhutan’s 600 MW Khorlochhu project
Khorlochhu Hydro Power Limited (KHPL) has signed the main electro-mechanical contract for Bhutan’s 600 MW Khorlochhu hydropower project with ANDRITZ Hydro Private Limited, India. The agreement, signed on June 27, 2026, at Paro, covers the design, manufacturing, supply, installation, testing and commissioning of electro-mechanical works within a timeline of 39 months.
Contract signed
The agreement was signed in the presence of Lyonpo Gem Tshering, Minister for Energy and Natural Resources, along with senior management from ANDRITZ Hydro, KHPL, Druk Green Power Corporation Limited (DGPC), and its related subsidiaries.
The contract covers the complete electro-mechanical package for the Khorlochhu project, marking the start of an integrated construction phase that requires coordination between civil, electro-mechanical and hydro-mechanical works.
Project construction
The project’s civil works, including the dam, power house and headrace tunnel, are progressing. Power evacuation infrastructure is being developed by Bhutan Power Corporation Limited.
The signing marks another milestone in the project’s construction programme, which targets completion within an overall timeline of five years.
Project ownership and timeline
KHPL is a joint venture in which DGPC holds a 60% stake and Tata Power Company Ltd holds 40%.
Located in the Trashiyangtse Dzongkhag region, the project has an estimated cost of about Rs 6,900 crore, including financing charges. Commissioning is targeted between 2029 and 2030.
The project is expected to generate 2,524 million units of electricity annually. In addition to meeting Bhutan’s domestic demand, surplus electricity will be supplied to India, particularly during the summer months.
A 145-km, 400 kV double-circuit transmission line, to be developed by Bhutan Power Corporation Ltd, will connect the project to the Goling pooling station.
Statements
Lyonpo Gem Tshering said the agreement reflected the importance of strategic partnerships and technology-driven collaboration in supporting Bhutan’s long-term energy ambitions. He added that it demonstrated the country’s commitment to sustainable hydropower development, strengthening technical capabilities and creating greater value for future generations.
DGPC Managing Director Dasho Chhewang Rinzin said the agreement represented an important milestone for the Khorlochhu project. He said collaboration with global partners such as ANDRITZ Hydro would support knowledge transfer, capacity building and access to evolving technologies needed to achieve Bhutan’s energy sector objectives.
Mr. Frederic Sauze, Executive Board Member of the Global ANDRITZ Group and CEO, ANDRITZ HYDRO GmbH, said the company remained committed to its partnership with DGPC and Bhutan’s energy sector and would support the project through its global expertise and technologies.
Photo credit: Khorlochhu Hydro Power Limited