Tata Power, Bhutan & World Bank Drive $515M Clean Energy Boost with Dorjilung Project

Bhutan has signed $515 million in financing agreements with the World Bank, alongside Tata Power, to build the 1,125 MW Dorjilung Hydroelectric Power Project—its largest hydropower initiative, expected to generate one-third of the nation’s electricity and boost GDP by 2.4%.

Project Overview

• Capacity: 1,125 MW
• Location: Kurichhu River, eastern Bhutan
• Annual Generation: Over 4,500 GWh of clean electricity
• Completion Target: 2031
• Economic Impact: Expected to raise Bhutan’s GDP by 2.4%

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Financing & Structure

• Total Project Cost: $1.7 billion
• World Bank Financing: $300M from IDA (includes $150M grant), $215M from IBRD, up to $300M from IFC
• Public-Private Partnership: Druk Green Power Corporation (60%) and Tata Power (40%)
• Private Sector Catalyzation: Expected to mobilize $900M additional financing

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Regional Impact

• Exports to India: Nearly 80% of annual generation
• Carbon Reduction: Displacement of 3.3 million tons of CO₂ annually
• Energy Security: Reduces winter imports, provides surplus summer power for export

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Economic & Social Benefits

• Jobs: Direct and indirect employment opportunities
• Sectors Boosted: Manufacturing, tourism, and small businesses
• Revenue Use: Export revenues reinvested in health, education, and infrastructure

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Leadership Statements

• Dasho Tshering Tobgay, PM of Bhutan: “This project is a cornerstone of Bhutan’s 13th Five-Year Plan… advancing our carbon-negative commitment.”
• Johannes Zutt, World Bank VP South Asia: “The financing model sets a new standard for sustainable infrastructure development.”
• Dr Praveer Sinha, CEO Tata Power: “This landmark project will strengthen regional energy security and deepen India–Bhutan clean energy cooperation.”

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Key Takeaways

• Bhutan’s largest hydropower venture under PPP
• Model for sustainable financing with minimal sovereign debt exposure
• Transforms Bhutan’s energy sector, reinforces carbon-negative status
• Deepens regional clean energy trade with India