First Bhutan-India Hydropower Project Joint Venture Formally Registered

8 July 2015

The certificate of incorporation for the 660 megawatt Kholongchu Hydropower Project (KHP) was formally handed over to Bhutan's Druk Green Power Corporation and India's Satluj Jal Vidyut Nigam on 3 July 2015 by Bhutan Economic Affairs Minister, Mr. Norbu Wangchuk. Construction license from the Bhutan Electricity Authority is expected to follow KHP's formal registration, allowing the company to begin works on the hydropower project.

Officials of KHP expect construction of about 40 kilometers of road leading to the project site to soon commence, and estimate completion of the roads in a year. Construction of the hydropower project components will begin once the site is connected by road.

KHP is the first joint venture between Bhutan and India. The project is scheduled to commission in 77 months, including 18 months of pre-construction activities. It has an estimated cost of $608.8 million, and is expected to generate 2,568 million units of electricity annually.

Bhutan and India signed a framework agreement on four joint venture-model hydropower projects totaling 2,120 MW in April 2014. In June 2014, India Prime Minister Narendra Modi laid the foundation stone for KHP.

Hydropower projects generate export revenues for Bhutan, and provide a source of clean and affordable electricity to India.


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