DHI and CST Partner to Establish Bhutan’s First Structural Timber Testing and Research Facility

Thimphu, Bhutan – 10 February 2025 – Druk Holding and Investments Limited (DHI) and the College of Science and Technology (CST), Royal University of Bhutan, signed a Memorandum of Understanding (MoU) on 10 February 2025 to establish Bhutan’s first Structural Timber Testing, Research, and Promotion Facility. The collaboration aims to help unleash the potential of Bhutan’s timber resources by advancing research, education, and innovation in timber-based engineering and sustainable construction practices.

Despite its rich forest resources, Bhutan imports a substantial volume of construction materials each year, with carbon-intensive inputs like steel and concrete accounting for a sizeable portion of these. In recent years, Mass Engineered Timber (MET) has emerged as a more environmentally friendly alternative to these materials. The founding mandate of the structural timber facility is to position Bhutan to participate in this emerging market segment based on its extensive forestry resources.

Achieving this mandate entails assessing and enhancing the quality of native Bhutanese timber to prepare it for structural use in the domestic market, which is increasingly aware of and experimenting with sustainable construction practices, or abroad. Housed within CST’s Phuntsholing campus, the Structural Timber Testing, Research, and Promotion Facility will be the only domestic provider of the testing and research capabilities required to evaluate whether Bhutanese timber can produce MET materials which match the segment’s strict product quality and safety standards, positioning it as a key enabler of the MET market. In addition to housing and maintaining the state-of-the-art testing equipment required to certify MET materials, CST will develop new academic courses and research programs to support human resource development in the timber engineering sector.

DHI is committed to providing financial support for CST’s buildout of the domestic infrastructure required to enable MET sector growth in Bhutan. This investment aligns with the Kingdom’s broader vision of promoting sustainable economic development by optimising the use of locally available resources and reducing dependence on imported materials.

Mr. Ujjwal Deep Dahal, CEO, Druk Holding and Investments Ltd, said: “This collaboration represents a leap forward and an important milestone in the development of Bhutan’s timber industry. The establishment of this research and testing facility at CST including the study of investments in MET and implementation of technologies viz. Thermo Mechanical Timber Modification (TMTM) are testament to our commitment to sustainable development. With these collaboration in research and development and investments, we are not only promoting the use of local timber resources, but we are also paving the way for a sustainable and innovative future for construction.”

The facility will also serve as a knowledge hub, providing industry stakeholders, engineers, and researchers with valuable insights into timber’s structural properties and potentially widening its application in the construction industry and beyond. The initiative is expected to have a significant impact on Bhutan’s green economy by fostering the use of timber as a viable and environmentally friendly sustainable construction material.

Dr. Cheki Dorji, President, CST  remarked, "We are thrilled to partner with DHI to empower the next generation of engineers and researchers in Bhutan and internationally to explore innovative timber engineering solutions. In addition to helping improve the quality of modern construction materials, the facility will also serve as a platform for collaboration and knowledge exchange among industry professionals, ultimately contributing to a greener future for Bhutan and the world."

The DHI-CST partnership exemplifies Bhutan’s forward-thinking approach to sustainable development, leveraging rich natural resources to drive economic growth and innovation in the construction sector.

 About Druk Holding and Investments Limited (DHI)

Druk Holding & Investments Ltd, the commercial arm and trusted steward of the Royal Government of Bhutan, was established in 2007 through a Royal Charter to hold and manage the existing and future investments of the Royal Government for the long-term benefit of the people of Bhutan. DHI holds shares of 24 different domestic companies operating in the manufacturing, energy, natural resources, financial, communication, aviation, trading and real estate sectors.

DHI’s wider portfolio contains investments across a range of asset classes that deliver exposure to traditional sectors and the industries driving the modern economy. This includes global equities, fixed income and venture capital investments in promising startups; domestic and international real estate; renewable energy including hydropower generation; healthtech, biotech, life sciences and agritech; and digital asset mining and investment. 

DHI’s future-facing investment strategy is helping to build a more connected and sustainable Bhutan by deepening local knowledge of and engagement in the technology landscape. At the same time, it fosters relevant human capital for industries of the future, creating jobs and preparing citizens to participate in the modern global economy from within Bhutan. To learn more, visit https://www.dhi.bt/.

About the College of Science and Technology (CST)

The College of Science and Technology (CST) is the first institute in the country to offer undergraduate degree programmes in engineering under the Royal University of Bhutan. The college aspires to be a centre of excellence in the field of science and technology-enriched with GNH values by offering quality programmes that are relevant to the need of the job market both within and outside the country.

CST is responsible to oversee the tertiary education system in the Kingdom of Bhutan in the field of science and technology. The College presently offers Bachelor degree programmes in Civil Engineering, Electrical Engineering, Electronics and Communications Engineering, Information Technology, Architecture, Instrumentation and Control Engineering, and Engineering Geology. The College also offers a Master degree programme in Renewable Energy and Construction Management. The curriculum got evolved to address the quality, internationalization and with the urgent need felt by the country. Besides the regular programmes, the College, having been duly identified and recognized by the Royal Civil Service Commission, conducts short-term training, workshops and courses for in-service civil servants, particularly for technical professionals. Our campus offers high-quality learning, teaching and research spaces to better meet the needs of students, academics and researchers.