The government and the World Bank have signed a 515-million US dollar loan agreement to fund the Dorjilung Hydroelectric Project at Kurichhu in Monggar. The 1,125-megawatt project is expected to strengthen the country’s energy security and boost economic growth with an estimated annual revenue of around Nu 25bn.
The construction of dam and powerhouse for the Dorjilung Hydropower Project, located upstream of Kurichhu, will begin in October this year.
Once complete, the hydropower project will generate over 4,500 GWh of electricity annually, which can roughly power over two million homes in low energy consumption countries like Bhutan.
It is expected to increase the country’s GDP by 2.4 per cent.
According to the Druk Green Power Corporation, DGPC, this will aid in solving Bhutan’s winter power shortages.
The country faces significant power shortage during winter months, with the government importing 5.9 billion ngultrum worth of electricity in 2024.
Winter energy demand is expected to increase to 4000 MW by 2040, prompting the government to diversify energy sources.
Dasho Chhewang Rinzin, the Managing Director of the DGPC, said the corporation is planning to develop about 20,000 megawatts of hydropower capacity. “Projects like Khorlochhu, Amochhu, and Dorjilung are part of it. We will retain electricity generated during the winter to meet domestic demand, and export only the surplus during summer.”
The project will be developed under a public-private partnership model, between DGPC and Tata Power, India.
“The purpose of this partnership is to bring the best of both parties in technology, implementation plan, and financing arrangement. Whatever the profit, it will be distributed on 60-40 per cent between the two companies,” said Dr Praveer Sinha, the CEO/MD of Tata Power.
The project is estimated to cost around 1.7 billion US dollars, roughly Nu 161bn.
It is expected to be completed by 2031.
Deki Lhazom
