The World Bank Group has approved long-term financing for the 1,125 MW Dorjilung Hydropower Project in Bhutan, co-owned by Tata Power and Druk Green Power Corporation (DGPC). The project aims to generate over 4,500 GWh of clean electricity annually, with about 80% supplied to India, boosting regional clean energy cooperation and strengthening energy security.
Hydropower Project Approval
The World Bank’s Board of Executive Directors has approved long-term financing for the 1,125 MW Dorjilung Hydropower Project (DHPL) in Bhutan. DHPL is a Special Purpose Vehicle (SPV) jointly owned by Druk Green Power Corporation (60 percent) and The Tata Power Company Limited (Tata Power) (40 percent).
Projected Benefits
The project is expected to generate over 4,500 GWh of clean electricity annually and will expand Bhutan’s installed energy capacity by nearly 40 percent. Approximately 80% of the annual electricity generation will be supplied to India.
Financial Details
The financing package includes a $150 million grant and a $150 million credit from the International Development Association (IDA), a $15 million enclave loan from the International Bank for Reconstruction and Development (IBRD) to DGPC (Government of Bhutan), as well as a $200 million IBRD enclave loan and a $300 million loan from the International Finance Corporation (IFC) to Dorjilung Hydro Power Limited (DHPL).
Strategic Importance
The Dorjilung project reinforces energy cooperation between Bhutan and India, promoting shared economic and environmental benefits. The project is expected to generate significant employment during construction and operations, stimulating entrepreneurship and supporting livelihoods.
Source: BSE
