Tata Power’s hydropower JV in Bhutan secures $515-M World Bank financing

The World Bank has signed financing agreements totalling USD 515 million with Dorjilung Hydro Power (DHPL), a special purpose vehicle (SPV) jointly owned by Bhutan’s Druk Green Power Corporation (60%) and Tata Power (40%). The estimated total project cost is USD 1.7 Billion. This financing commitment is expected to catalyse an additional USD 900 million in private sector funding.DHPL is developing a 1,125 MW hydropower project on the Kurichhu River in eastern Bhutan. The project is designed to generate over 4,500 GWh of clean electricity annually. This output will address Bhutan’s seasonal energy gap during the winter months and provide surplus power for export to India during the summer and rainy seasons.Over the 30-year International Development Agency (IDA) credit period, the project is projected to generate approximately USD 4 Billion in revenues for Bhutan through taxes, free power, and equity dividends.