World Bank backs 1,125 MW Dorjilung hydropower project in Bhutan

The World Bank Group has approved long term financing for the 1,125 MW Dorjilung Hydropower Project in Bhutan. The project is being developed as a joint venture between Tata Power and Druk Green Power Corporation (DGPC) under a public private partnership model.

The project is expected to generate more than 4,500 GWh of clean electricity each year. Around 80% of the power output is planned to be supplied to India.

The approved financing package includes a $150 million grant and a $150 million credit from the International Development Association (IDA). It also includes a $15 million enclave loan from the International Bank for Reconstruction and Development (IBRD) to DGPC, a separate $200 million IBRD enclave loan, and a $300 million loan from the International Finance Corporation (IFC) to the project company, Dorjilung Hydro Power Limited.

Once operational, the Dorjilung project is expected to increase Bhutan’s installed energy capacity by nearly 40%. The project is also expected to support employment generation and local entrepreneurship in the Mongar and Lhuentse districts.

Tata Power Trading Company Limited, a wholly owned subsidiary of Tata Power, will handle the import and distribution of electricity into India.

The featured photograph is for representation only.