During the Question Hour of the Fourth Session of the Fourth National Assembly on 9 December 2025, the Minister for Energy and Natural Resources (MoENR), Gem Tshering, delivered one of the most comprehensive and candid status updates to date on the long-anticipated Chamkharchhu Hydropower Project. The Minister described a complex landscape of progress, setbacks, restructuring, and renewed momentum surrounding what is widely regarded as one of Bhutan’s most strategically significant energy undertakings.
The intervention came in response to a pointed question from Phuntsho Dendup, Member of Parliament (MP) representing the Nubi–Tangsibji Constituency, who pressed the government for clarity on the project’s advancement and projected timelines. The MP noted that extensive preparatory works—such as access roads, major infrastructure components, and on-ground facilitation—had already been completed, raising public expectations for quicker movement on the main project itself.
“This project holds great potential to create employment opportunities, improve infrastructure, and contribute to long-term development for the people of Zhemgang,” MP Phuntsho Dendup told the House, emphasizing its developmental stakes and the transformative impact hydropower investments have historically had on rural communities.
Responding to the inquiry, Minister Gem Tshering explained that the Chamkharchhu initiative is being developed in four distinct phases, each with its own set of partners, power capacities, and timelines. He underscored that while hydropower remains Bhutan’s economic backbone, the realities of cross-border partnerships, environmental compliance, and shifting corporate landscapes have added layers of complexity to the project’s rollout.
“This project is a bilateral undertaking that is very important to us,” the Minister said, reiterating the project’s strategic significance. He noted that Chamkharchhu I—the first phase—had initially achieved strong momentum, with a major contract signed last year. This was followed by the signing of a Memorandum of Understanding (MoU) in April 2025 between Druk Green Power Corporation (DGPC) and Reliance Infrastructure Limited for the implementation of the phase.
However, unexpected complications emerged. “Due to internal issues within the Reliance Group, the project could not be implemented as originally planned,” the Minister revealed. With Reliance facing corporate restructuring and financial constraints, project execution stalled, prompting DGPC to reassess its options.
In a significant strategic shift, DGPC has now informed the Ministry that it will take up the responsibility of implementing Chamkharchhu I on its own starting in 2026. While discussions with Reliance are ongoing, the Minister acknowledged that compliance with international procedures and the need to resolve partner-side difficulties have caused delays. “Despite the setbacks, our Ministry is actively following up and providing regular updates to ensure progress continues,” he assured Parliament.
The Minister then turned to Chamkharchhu II, describing it as a major breakthrough in Bhutan’s hydropower landscape. With an expected generation capacity of 590 MW, this phase recently secured a partnership agreement with GMR—one he characterized as a critical turning point. “This marks an important step forward,” he said. “We are hopeful that this collaboration will help us meet our energy goals and contribute to national development.”
Not all phases, however, have moved forward. Chamkharchhu III has been formally discontinued after extensive environmental assessments revealed that it lies within the boundaries of Thrumshingla National Park. “After thorough assessments, no viable solution could be found, and the project has been dropped,” the Minister stated. He reaffirmed the government’s commitment to conservation, stressing that no hydropower development would proceed if it poses significant ecological risks. The decision reflects Bhutan’s long-standing policy of balancing development with environmental stewardship.
The most advanced component of the entire initiative is Chamkharchhu IV, a 390 MW project awarded to Tata Power Company Limited. The Minister reported that all necessary agreements have been finalized and that the preparation of the Detailed Project Report (DPR) is currently underway. “Works for Chamkharchhu IV are in progress, and the government is optimistic about its timely completion,” he said.
Taken together, the four phases of the Chamkharchhu hydropower development represent a blend of opportunity and challenge. While delays, partner complications, and environmental constraints have slowed certain components, key agreements and project transitions signal renewed forward momentum. The government maintains that, once fully realized, the Chamkharchhu project will play a pivotal role in strengthening Bhutan’s energy security, driving regional development, and accelerating national economic growth.
Sherab Dorji
From Thimphu
