The Royal Government of Bhutan and the World Bank on May 7 signed financing agreements worth $515 million for the 1,125 MW Dorjilung Hydroelectric Power Project, a move expected to significantly reshape the regional energy market and strengthen India-Bhutan power cooperation. The project, located on the Kurichhu River in eastern Bhutan, is projected to generate over 4,500 GWh of clean electricity annually and contribute nearly one-third of Bhutan’s total power generation capacity.
The financing package includes $300 million from the International Development Association (IDA), including a $150 million grant, and $215 million from the International Bank for Reconstruction and Development (IBRD). The estimated $1.7 billion project is being developed through a public-private partnership involving Bhutan’s Druk Green Power Corporation and Tata Power
. The project is also expected to attract nearly $900 million in additional private sector investment.
Bhutan Prime Minister Tshering Tobgay said the hydropower venture would support economic growth, job creation, clean energy exports and Bhutan’s carbon-negative goals. Officials estimate the project could raise Bhutan’s GDP by 2.4 per cent while reducing around 3.3 million tonnes of CO2 emissions annually.
