Powering the Region: The World Bank’s $300M+ Bet on Bhutan

The World Bank’s Board of Executive Directors has approved long-term financing for the 1,125 MW Dorjilung Hydropower Project (DHPL), marking a major step in strengthening clean energy cooperation between India and Bhutan.

The project, structured as a public–private partnership (PPP), is owned by Druk Green Power Corporation (DGPC) with a 60% stake and Tata Power with 40%. Set to be Bhutan’s largest hydropower project, DHPL is expected to generate over 4,500 GWh of clean electricity annually, increasing Bhutan’s total power generation capacity by nearly 40%. About 80% of the electricity produced will be exported to India, enhancing regional energy security, with Tata Power Trading Company responsible for power import and distribution in India.

The financing package includes a USD 150 million grant and a USD 150 million credit from the International Development Association (IDA), along with additional loans from the International Bank for Reconstruction and Development (IBRD) and the International Finance Corporation (IFC).

News by Rahul Yelligetti.