The World Bank Group has approved financing for the 1,125 MW Dorjilung Hydropower Project in Bhutan, a public–private partnership being developed 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 project is Bhutan’s largest hydropower development under the PPP model and 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. The approved financing package includes a USD 150 million grant and a USD 150 million credit from the International Development Association, a USD 15 million enclave loan from the International Bank for Reconstruction and Development to the Government of Bhutan along with a USD 200 million IBRD enclave loan and a USD 300 million loan from the International Finance Corporation to Dorjilung Hydro Power Limited. The remaining funding requirements will be met through market borrowings.