Investment and Shareholders' Agreement Signed for Bhutan's 40MW Parochhu Hydropower Project

en.Wedoany.com Reported - On October 4, Druk Green Power Corporation (DGPC) and Tashi Group investor Wangchuk Dorji signed an investment and shareholders' agreement for the Parochhu Hydropower Project to jointly develop the 40MW hydropower project located in Paro. The agreement establishes the equity structure of the project company, with DGPC holding 51% and Wangchuk Dorji holding 49%, and covers project financing, development, operation, and maintenance arrangements. This signing marks the first time DGPC has advanced a hydropower project through equity partnership with a domestic private investor in Bhutan.

The Parochhu project was previously planned with an installed capacity of 33MW, and the subsequent design scheme adjusted the capacity to 40MW. Bhutan's 2026-2027 fiscal year budget report shows that the detailed project report has been completed and tender design is currently being advanced; the budget document lists it in the hydropower project reserve list.

Early engineering investigations for the project have already been carried out in advance. In 2024, Bhutan's Ministry of Energy and Natural Resources publicly procured geological and geotechnical investigations required for the feasibility study of the Parochhu Hydropower Project, with the work site located in Paro, and the procurement scope included geological and geotechnical engineering investigations for the project feasibility study stage. The project subsequently entered the detailed design and development preparation stage.

Public technical information shows that the Parochhu scheme is located in Tsento Gewog, Paro Dzongkhag, with the intake facility planned near Shana. Current scheme parameters include a gross head of approximately 219 meters, a net head of 208.05 meters, and a design flow of 19.55 cubic meters per second, with the generated electricity planned to be connected to the Olathang substation approximately 30 kilometers away.

The installed capacity figure given in the Bhutanese government's 2026 budget document is 40MW, and July 2029 is listed as the expected commercial operation date. At the current stage, the project has completed the detailed project report and is advancing tender design, and this investment and shareholders' agreement further clarifies the equity responsibility relationships for subsequent financing, construction and development, and operation and maintenance.