The World Bank Group has announced a package of USD 815 million for the construction of Bhutan’s largest hydropower project, the Dorjilung Hydropower Project. In Nepali currency, this amount is more than NPR 11.8 billion.

This package is expected to strengthen Bhutan’s sustainable energy development and promote regional energy trade. It is Bhutan’s largest hydropower project based on public–private partnership, which will mobilize an additional USD 900 million from private investors.

The project has a capacity of 1,125 MW, which will generate more than 4,500 GWh of clean electricity annually. It is expected to increase Bhutan’s energy production by 40% and energy exports by 42%. During both construction and operation phases, the project is expected to create thousands of jobs and boost the local economy.

The total investment by the World Bank Group is USD 815 million.

According to the World Bank, this package prioritizes environmental and social aspects while supporting Bhutan’s carbon-negative commitment. The project will upgrade roads and improve access to markets and essential services for local communities. It will address seasonal energy shortages, eliminate expensive winter imports, and create opportunities to export electricity to India during the summer monsoon.

The project is operated by DHPL, a special purpose vehicle owned by Druk Green Power Corporation (60%) and Tata Power (40%). It is expected to reduce poverty, unemployment, and migration in Mangar and Lhuntse districts, and encourage local entrepreneurship. Xavier Furtado, Country Director of the World Bank, described this package as a model for Bhutan’s sustainable development.

The project is expected to accelerate Bhutan’s economic growth by promoting regional clean energy trade.

urjasanchar