The Royal Government of Bhutan and the World Bank have signed financing agreements totaling $515 million for the 1,125 MW Dorjilung Hydroelectric Power Project, marking a major milestone in Bhutan’s clean energy and infrastructure expansion strategy. The project, to be developed on the Kurichhu River in eastern Bhutan, is expected to generate over 4,500 GWh of electricity annually and contribute nearly one-third of the Kingdom’s total energy generation.
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 implemented under a public-private partnership structure involving Bhutan’s Druk Green Power Corporation and Tata Power, India’s largest integrated private power company. Officials said the financing model is designed to minimize sovereign borrowing while attracting nearly $900 million in additional private investment.
Bhutan Prime Minister Tshering Tobgay said the project aligns with Bhutan’s 13th Five-Year Plan and will support economic growth, job creation and clean energy exports. The project is also expected to increase Bhutan’s GDP by 2.4 per cent and reduce nearly 3.3 million tonnes of carbon emissions annually.
