World Bank approves $815 mn for Tata Power-backed Dorjilung hydro project
The World Bank has approved the $815 million long-term finance package for 1,125 megawatt Dorjilung Hydropower Project, in which Tata Power holds 40 per cent share
 "World Bank approves $815 mn for Tata Power-backed Dorjilung hydro project")
The World Bank has approved the USD 815 million long-term finance package for 1,125 megawatt Dorjilung Hydropower Project, in which Tata Power holds 40 per cent share.
The remaining 60 per cent in the special purpose vehicle (SPV) is held by Bhutan's Druk Green Power Corporation (DGPC).
The Board of Executive Directors of the World Bank has approved and sanctioned long-term financing for the 1,125 MW Dorjilung Hydropower Project (DHPL), Tata Power said in statement.
The financing package includes a USD 150 million grant and a USD 150 million credit from the International Development Association (IDA) and a USD 15 million enclave loan from the International Bank for Reconstruction and Development (IBRD) to DGPC (Government of Bhutan).
The package also includes as a USD 200 million IBRD enclave loan and a USD 300 million loan from the International Finance Corporation (IFC) to Dorjilung Hydro Power Limited (DHPL).
The balance funding requirements for the project will be arranged from various market participants.
Tata Power Trading Company Limited, a wholly-owned subsidiary of Tata Power, will be responsible for importing power into India and managing its onward distribution.
The 1,125 MW Dorjilung Hydropower Project (DHPL) will be Bhutan's largest hydropower project to be developed under a public-private partnership (PPP) model and is expected to generate more than 4,500 GWh of clean electricity annually.
This will expand Bhutan's installed energy capacity by nearly 40 per cent and further strengthen the country's position as a reliable exporter of clean energy to India.
About 80 per cent of the annual electricity generation form the project will be supplied to India.
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.
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