Thimphu: In a major push for sustainable energy development in South Asia, the World Bank
Group has approved a significant financing package, including a reported $515 million
component, for Bhutan’s ambitious Dorjilung Hydropower Project.The project, with a planned
capacity of 1,125 megawatts, will be developed on the Kurichhu River in eastern Bhutan,
making it the largest hydropower initiative in the Himalayan nation’s history. Designed as a
run-of-the-river project, it aims to generate over 4,500 gigawatt-hours of electricity annually.The
financing structure is part of a broader package estimated at around $815 million, combining
grants, credits, and loans from different arms of the World Bank. The project is also expected to
mobilize substantial private investment, taking the total cost to nearly $1.7 billion.
The hydropower plant will be developed under a public-private partnership model, with Druk
Green Power Corporation holding a 60% stake and Tata Power owning the remaining 40%. This
marks a shift in Bhutan’s hydropower sector toward diversified financing and greater private
sector participation.Officials say the project will significantly enhance Bhutan’s electricity
generation capacity by nearly 40% while reinforcing its status as a carbon-negative country.
Around 80% of the electricity produced is expected to be exported to India, strengthening
long-standing energy cooperation between the two nations.Beyond energy production, the
project is expected to generate employment, improve regional infrastructure, and support local
economic growth in eastern Bhutan. It will also help address seasonal electricity shortages,
particularly during winter months when river flows decline.Construction is expected to be
completed by 2032, positioning the Dorjilung project as a key pillar in Bhutan’s long-term energy
and economic strategy.Experts view the initiative as a model for future hydropower development
in the region, combining climate goals with innovative financing and cross-border collaboration.
“Massive Hydropower Project to Boost Bhutan’s Economy and Exports”
