The World Bank Group has approved financing for the 1,125 MW Dorjilung hydropower project located on the Kurichhu river in eastern Bhutan. The project is being developed in a public–private partnership (PPP) model through Dorjilung Hydro Power Limited, a special purpose vehicle jointly owned by Druk Green Power Corporation with a 60 per cent stake and Tata Power with 40 per cent.
The approved financing package includes a $150 million grant and a $150 million credit from the International Development Association, a $15 million enclave loan from the International Bank for Reconstruction and Development (IBRD) to the Government of Bhutan. Additionally, it will include a $200 million IBRD enclave loan and a $300 million loan from the International Finance Corporation to Dorjilung Hydro Power Limited. The remaining funding requirements will be met through market borrowings.
The project is reportedly the largest hydropower project in Bhutan under the PPP model. Furthermore, it is expected to generate more than 4,500 GWh of clean electricity annually, expanding the country’s installed capacity by nearly 40 per cent. Over 80 per cent of the generation will be supplied to India. Power imports into India will be handled by Tata Power Trading Company Limited.
