The Druk Green Power Corporation (DGPC) is updating the detailed project report (DPR) for the 1,125MW Dorjilung hydropower project located in Lhuentse. The DPR, which is being updated with a grant from the World Bank, will take about 15 more months to complete.
The DPR is being revised to align it to the revised DPR guidelines of the government of Bhutan and to make the DPR bankable with international financial institutions.
Recently, the government approved a proposal to seek support from the World Bank to finance the project.
Managing Director of DGPC, Dasho Chhewang Rinzin said the DPR would be updated by the first half of 2024.
The World Bank is providing financial support of USD 4M to update the DPR.
Dasho Chhewang Rinzin said that the project cost will be finalised as part of the DPR update. Based on the cost of the project, financing may have to be considered through a consortium of financial institutions, he said. “The energy market in the region is evolving very fast and implementation models are also evolving. We hope that by the time the DPR is updated, a financing model will be formalized.”
The modalities of implementation will depend largely on the financing model that emerges.
The project was supposed to be executed tri-laterally with Bhutan, Bangladesh, and India and taking forward the project through a trilateral arrangement was one option being suggested. However, it could not be confirmed.