Hydroelectric projects may seem remote from daily life until a single event brings them into focus. A contract signature rarely generates excitement, yet it determines whether action begins or a project remains in limbo. For Bhutan’s Dorjilung hydroelectric development, that kind of defining moment has now occurred.
Before the beginning of actual construction work
In many cases, large‑scale power production does not move directly from planning to building. Instead, each significant step involves a binding agreement that reduces ambiguity and assigns responsibility before any physical construction begins. Projects can remain in an extended pre‑construction status for long periods until such obligations are established.
This changed for the Dorjilung Hydroelectric Development after a series of Pre‑Construction Contract Agreements were executed between Dorjilung Hydro Power Limited (“DHPL”), a wholly owned subsidiary of Druk Green Power Corporation (“DGPC”), and the contractors selected to perform the initial phases of the project.
The signing of these contracts was followed by a Khadar Ceremony, indicating the level of formalization involved in the contractual relationship formed between DHPL and the respective contractors selected.
Dorjilung is not yet engaged in full‑scale construction activities, and DGPC did not provide information on anticipated generation or commissioning schedules. However, the contract agreements now define DHPL’s position in the development process, moving the project from an open‑ended preparatory stage into a clearly defined pre‑construction phase.
Two pre‑construction packages mark a clear procedural step
DHPL also announced how the first phase would be structured. The project company reported that two separate pre-construction packages had been contracted for. DHPL stated that letters of award had been issued on March 20, 2026, for both of the pre-construction packages.
As previously indicated above, the issuance of a letter of award is generally considered a key procedural step that indicates that the contractors have been formally awarded a contract based upon their bid submission.
The two selected companies are Patel Engineering Ltd. of India and Rigsar Construction Pvt. Ltd. of Bhutan. DHPL stated that the selections reflect experience in hydropower and tunnelling works and a desire to expedite progress while maintaining high‑quality execution standards. These early works are intended to establish a foundation for subsequent phases of development.
Together, the two package awards signal a transition from planning to defined execution, even as physical construction remains pending. By delineating scope and accountability at this stage, DHPL has clarified how the project will progress before broader construction activities begin.
Scope defined under each package agreement
It became apparent what was contained in the two packages once the respective scopes were identified. DHPL advised that Package I was awarded to Patel Engineering Ltd. (India) and included the construction of two diversion tunnels, installation of hydromechanical gates, and construction of a highway road tunnel.
As indicated by DHPL, the scope of work included in Package I is related to river diversion and access infrastructure requirements that must be completed before major construction activities can commence.
Package II was awarded to Rigsar Construction Pvt. Ltd. (Bhutan) and includes the construction of Adit‑4 of the Headrace Tunnel and a cable access tunnel with access to pre‑support tunnels at the powerhouse. According to DHPL, the items in Package II are critical to facilitating the safe and efficient progression of preliminary activities.
As illustrated by the scope definitions published by DHPL, “pre‑construction” has become tangible for Dorjilung and refers to specific tunnels, access works, and supporting infrastructure assigned under contract.
From preparation to obligation
While pre‑construction agreements do not produce electricity, they convert open‑ended preparation into an obligation. At Dorjilung, named contractors and defined scopes have replaced open‑ended planning. This shift reflects commitment rather than outcome, illustrating how large‑scale hydropower projects in Bhutan often begin to take shape through early‑stage tunnelling contracts and access works.
