The World Bank Group has approved long-term financing for the 1,125 MW Dorjilung Hydropower Project (DHPL) in Bhutan, a Special Purpose Vehicle (SPV) co-owned by Bhutan’s Druk Green Power Corporation (60%) and India's Tata Power Company Limited (40%). This project is poised to generate over 4,500 GWh of clean electricity annually, with approximately 80% to be supplied to India, thereby bolstering regional energy security and clean energy cooperation between the two nations. DHPL will be Bhutan’s largest hydropower project developed under a public-private partnership (PPP) model. The financing package includes a $150 million grant and a $150 million credit from the International Development Association (IDA), a $15 million enclave loan from the International Bank for Reconstruction and Development (IBRD) to DGPC, a $200 million IBRD enclave loan, and a $300 million loan from the International Finance Corporation (IFC) to DHPL. The remaining funding will be sourced from market participants. Tata Power Trading Company Limited, a subsidiary of Tata Power, will manage the import and distribution of the generated power into India. The project is expected to significantly boost Bhutan’s installed energy capacity by nearly 40% and create substantial employment opportunities in the Mongar and Lhuentse districts. This development underscores the collaborative efforts between governments, multilateral institutions, and the private sector in advancing South Asia's clean energy landscape.
