Bhutan hydropower contract supports country’s growing energy demand

Alstom, in consortium with Andritz Hydro, has been awarded a contract by Dagachhu Hydro Power Corporation Limited (DHPC) to supply key electromechanical equipment to a new hydropower station in Bhutan.

The contract for the delivery of electromechanical equipment as well as the respective loan agreement was signed at the Federal Ministry of European and International Affairs in Vienna on 27 July.

The project marks another milestone in the development of existing hydropower potential in the Kingdom of Bhutan and hence its power supply. It will be financed with Bhutan's own equity and credit financing supplied by the Asian Development Bank (ADB) and the Oesterreichische Kontrollbank (OeKB) in a total investment amounting to €151m. The Alstom-led consortium, comprising Alstom Hydro Austria and Andritz Hydro and known as Austrian Hydro Consortium Dagachhu, was awarded the supply of the electromechanical equipment worth €55 million. Alstom Hydro's scope of supply amounts to some €30 million and comprises two 70 MVA generators as well as the entire electrical system including automation and protection. The equipment will be manufactured mainly in Switzerland, Austria and India. Andritz Hydro will supply two six-nozzle Pelton turbines and the entire hydraulic steelwork.

The high pressure power station (304 m head, installed capacity 124 MW, annual output 515 GWh) will be located in the south-western district of Dagana and will be built over a period of approximately four years, entering into operation by the end of 2012. The Austrian Development Cooperation (OEZA) paved the way to the development of this project as a result of its many years of successful collaboration with the Bhutanese authorities.