Bhutan’s hydropower sector has long relied on foreign construction companies for major works, with Bhutanese engineers and contractors mostly confined to minor roles. Over time, several foreign sub-contractors gained experience in Bhutan and later emerged as main contractors. This pattern, however, is beginning to change.
A shift is evident in the 54 MW Burgangchu Hydropower Project in Nangkor, Zhemgang, scheduled for completion in March 2026, and the 32 MW Yungichhu Project in Medtsho, Lhuentse, expected by February 2026. Both projects are implemented by Druk Green Power Corporation (DGPC) through its wholly owned subsidiary, Druk Hydro Energy Limited, which handles projects up to 150 MW. These initiatives have seen strong Bhutanese participation across design, engineering, civil, hydro-mechanical, erection and commissioning works.
According to DGPC Managing Director Dasho Chhewang Rinzin, smaller projects offer the same technical complexity as large ones and are critical for building expertise. Local contractors are executing civil works, while DGPC subsidiaries manage automation, hydro-mechanical systems and SCADA-based operations. Though delays occurred due to difficult geology, weather and unforeseen events, both run-of-the-river projects are expected to enhance regional grid stability, support local economies and strengthen Bhutan’s long-term hydropower capacity.