Tingbu, May 5th, 2026——The Royal Government of Bhutan and the World Bank signed a financing agreement worth $515 million today for 1125 megawattsThe Duojilong Hydroelectric ProjectThe project will account for about one-third of Bhutan's total electricity generation, driving economic growth and creating employment opportunities through access to affordable electricity and clean energy exports.

The Duojilong Hydropower Project is one of the 13 projects in BhutanthThis project is a five-year plan and will become the largest hydropower project developed by the kingdom under public-private partnership. This transformative investment will provide clean energy, promote economic growth, and advance our carbon negative commitmentsnoDanish Prime Minister Dasho Tsering Tobgayexpress.This project demonstrates our close partnership with the World Bank Group and our shared vision of sustainable prosperity for the Bhutanese people

The project is located on the banks of the Kurichu River in the eastern part of Bhutan and will generate over 4500 gigawatt hours of clean electricity annually, filling Bhutan's seasonal energy gap during winter and providing excess electricity for India's exports during summer and rainy seasons.

The hydropower station is expected to increase Bhutan's GDP by 2.4%. This will bring overall economic benefits, create direct and indirect employment opportunities, as well as entrepreneurial opportunities in Bhutan. It will promote the development of manufacturing, tourism, and small businesses by providing reliable and affordable electricity, and energy export revenue can be reinvested in basic services such as healthcare, education, and infrastructure. It will also have significant regional impacts, emitting 3.3 million tons of carbon monoxide2Promote clean energy trade every year.

Johannes Zutter, Vice President for South Asia at the World BankexpressThe Duojilong hydropower project adopts an innovative financing model, gathers public and private capital, and sets a new standard for sustainable infrastructure development in Bhutan。”In addition to providing economic and reliable electricity to support growth and job creation, this project will also reduce energy import costs, increase Bhutan's energy export revenue, while reducing carbon emissions and diversifying energy sources in South Asia

“The Duojilong Hydropower Project is a national key project that will bring about change in Bhutan - providing clean electricity, promoting economic growth, and advancing our carbon negative commitmentsnoHis Excellency Leonpo Lekki Dorgi, Minister of Finance of Danexpress. Its innovative financing structure ensures that the project does not impose an excessive burden on public finances, allowing us to continue investing in employees

This project marks a transformative shift in Bhutan's energy sector and opens the door for expanding this financing model to the hydropower industryDasho Chhewang Rinzin, Managing Director of Druk Green Power Company (DGPC)express.The project aims to provide critical grid flexibility, enabling us to manage seasonal shortages while maximizing export revenue. We are highly committed to the strict environmental standards of the project and maintaining Bhutan's position as a carbon negative country

Earlier this year, the Executive Board of the World Bank Group approved $300 million in concessional financing from the International Development Association (IDA), of which $150 million is in grants; $215 million financing from the International Bank for Reconstruction and Development (IBRD); And the International Finance Corporation (IFC) has provided up to $300 million in funding to DHPL, a special purpose company jointly owned by Bhutan's Drucker Green Power Company (60%) and Tata Power (40%), the largest private integrated power company in India. This project will promote clean energy cooperation between India and Bhutan and enhance regional energy security.

Dr. Pravir Sinha, CEO and Managing Director of Tata Power, stated:“We would like to express our gratitude to the Royal Government of Bhutan, the World Bank Group, and Drucker Green Power Company for their cooperation in advancing the 1125 MW Dorgilon project. The $515 million financing agreement signed today marks a significant milestone for the project, which will contribute to nearly one-third of Bhutan's population. This milestone project will strengthen regional energy security and deepen India's cooperation on clean energy. Nearly 80% of its annual power generation of 4500 gigawatt hours is supplied to India, which will help meet the demand growth during the summer peak and enable Bhutan to expand clean energy exports and share economic benefits

The project, estimated to be worth $1.7 billion, is designed as an innovative public-private partnership to minimize sovereign borrowing. It is expected that this financing will catalyze an additional $900 million in private sector financing. This unique financing structure enables Bhutan to cover project costs of $1.7 billion with only $150 million in direct credit exposure, and earn approximately $4 billion in cumulative income through taxes, free electricity, and equity dividends over a 30-year IDA credit period.

Today, financeSecretary Dashao Laki Wangmo, General Manager Dashao Chewang Linjin of the General DeveloperDHPL Interim CEO Uygin NanjieMr. Er, andDirector of the Bangladesh and Bhutan Division of the World BankJean PaismeRepresenting Bhutan and the World Bank respectively, signed a $300 million International Development Bank financing agreement and a $215 million International Development Bank financing agreement. The signing ceremony was held in the presence of the respected Prime Minister of Bhutan and the Vice Chairman of the World Bank for South Asia.

worldXavier Fultado, Country Manager of Bhutan Bank GroupexpressAt a time of global fuel supply disruptions, the Duojilong hydropower project represents a model for building clean, sustainable, and resilient energy security。”The World Bank Group has joined forces with IDA, IBRD, and IFC to launch an innovative financing plan that enables such a large-scale project to be realized while protecting Bhutan's debt sustainability