World Bank Approves $635 Million Financing for 1,125 MW Dorjilung Hydropower Project in Bhutan Co-Owned by Tata Power

The Board of Executive Directors of the World Bank has approved long-term financing for the 1,125 MW Dorjilung Hydropower Project (DHPL), a Special Purpose Vehicle jointly owned by Bhutan’s Druk Green Power Corporation (60 percent) and The Tata Power Company Limited (Tata Power) (40 percent). The project is expected to generate more than 4,500 GWh of clean electricity annually, about 80 % of which will be supplied to India. The financing package includes a $150 million grant and a $150 million credit from the International Development Association (IDA) and a $15 million enclave loan from the International Bank for Reconstruction and Development (IBRD) to DGPC, as well as a $200 million IBRD enclave loan and a $300 million loan from the International Finance Corporation (IFC) to Dorjilung Hydro Power Limited (DHPL). The project is expected to generate significant employment during both construction and operations, stimulate local entrepreneurship, and support livelihoods in the Mongar and Lhuentse districts in Bhutan.