The Royal Government of Bhutan and the World Bank on May 7 signed financing agreements worth $515 million for the 1,125 MW Dorjilung Hydroelectric Power Project, marking a major step in Bhutan’s clean energy expansion and regional power cooperation. The project, to be developed on the Kurichhu River in eastern Bhutan, is expected to generate over 4,500 GWh of electricity annually and contribute nearly one-third of the country’s total power generation.
Bhutan Prime Minister Tshering Tobgay described the project as a cornerstone of Bhutan’s 13th Five-Year Plan, saying it would boost economic growth, create jobs, and strengthen the country’s carbon-negative commitment. The hydropower project is expected to increase Bhutan’s GDP by 2.4 per cent while reducing seasonal energy shortages during winter and enabling surplus electricity exports to India.
The World Bank said the project would also help displace around 3.3 million tonnes of CO2 emissions annually and improve regional energy security. The estimated $1.7 billion project is being developed under a public-private partnership involving Bhutan’s Druk Green Power Corporation and Tata Power.
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