Bhutan: Second Green Power Development Project

Sovereign Project | 44444-013

Summary

The proposed project will finance Nikachhu hydropower plant, which is a run-of-the-river type with 118 MW capacity, located in the Nikachhu River in Trongsa district in the central region of Bhutan. The project aims for cross-border power export through a public private partnership and clean development mechanism.

Latest Project Documents

Consulting Notices

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Procurement Notices

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Procurement Documents

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Project Name Second Green Power Development Project
Project Number 44444-013
Country Bhutan
Project Status Approved
Project Type / Modality of Assistance Grant
Loan
Technical Assistance
Source of Funding / Amount
Grant 0421-BHU: Green Power Development Project II
Asian Development Fund US$ 25.25 million
Loan 3225-BHU: Second Green Power Development Project
Ordinary capital resources US$ 70.00 million
Loan 3226-BHU: Second Green Power Development Project
Asian Development Fund US$ 25.25 million
TA 8791-BHU: Acceleration of Hydropower Trading Development
Technical Assistance Special Fund US$ 1.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector Energy - Large hydropower generation
Gender Equity and Mainstreaming Some gender elements
Description The proposed project will finance Nikachhu hydropower plant, which is a run-of-the-river type with 118 MW capacity, located in the Nikachhu River in Trongsa district in the central region of Bhutan. The project aims for cross-border power export through a public private partnership and clean development mechanism.
Project Rationale and Linkage to Country/Regional Strategy Bhutan is currently the only South Asian country with a surplus of power for export. The country's installed generation capacity (1,614 MW) is significantly greater than its domestic demand (around 300 MW); hence Bhutan is a net power exporter. Of total power generated, around 75% is exported to India. Hydropower generation contributes to one-fifth of the country's gross domestic product (GDP), and the power sector accounts for one-third of government revenues. The revenue from power exports are the primary source for the government's socioeconomic development for social services such as health, education, and rural development. The hydropower development thus forms the backbone of Bhutan's economy and social lives. Hydropower development and energy trade is consistent with the ADB's country partnership strategy for Bhutan.
Impact Expanded cross-border power trading
Project Outcome
Description of Outcome Increased clean hydropower generation in Bhutan
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Hydropower plant constructed

2. DGPC and THyE project management and implementation capacity enhanced

3. Hydropower development and trading framework improved

Status of Implementation Progress (Outputs, Activities, and Issues)

--Ongoing

--Ongoing

--Ongoing

Geographical Location
Safeguard Categories
Environment A
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Provided in draft environmental impact assessments disclosed.
Involuntary Resettlement Provided in a draft resettlement plan disclosed.
Indigenous Peoples Not applicable.
Stakeholder Communication, Participation, and Consultation
During Project Design A series of consultations with affected persons and communities have been conducted by the project implementing agency for project preparation, and they will be continued.
During Project Implementation A series of consultations with affected persons and communities will be continued throughout project implementation.
Business Opportunities
Consulting Services The consultants financed by ADB for the attached TA will be recruited according to ADB's Guidelines on the Use of Consultants. An estimated 40 person-months (25 international, 15 national) of consulting services are required to strengthen the power sector's key frameworks and systems to enhance Bhutan's hydropower development and trading by using ADB TA. Consulting firms will be engaged using the quality and cost based selection (QCBS) method.
Procurement Procurement is expected to be in accordance with ADB Procurement Guidelines.
Responsible ADB Officer Satoshi Kurimoto
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Druk Green Power Corporation*
Bhutan
Tangsibji Hydro Energy LimitedThori Lam, Thimpu, Bhutan
Department of Hydropower & Power SystemsThimphu, Bhutan
Timetable
Concept Clearance 10 Oct 2011
Fact Finding 08 Jul 2014 to 25 Jul 2014
MRM 01 Oct 2014
Approval 15 Dec 2014
Last Review Mission -
Last PDS Update 20 Mar 2015

Grant 0421-BHU

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Dec 2014 04 May 2015 26 Jun 2015 30 Jun 2020 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 44.11 Cumulative Contract Awards
ADB 25.25 15 Dec 2014 0.00 0.00 0%
Counterpart 18.86 Cumulative Disbursements
Cofinancing 0.00 15 Dec 2014 0.00 0.00 0%

Loan

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 18.86 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 18.86 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

Loan 3225-BHU

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Dec 2014 04 May 2015 26 Jun 2015 30 Jun 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 70.00 Cumulative Contract Awards
ADB 70.00 15 Dec 2014 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 15 Dec 2014 0.00 0.00 0%

Loan 3226-BHU

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Dec 2014 04 May 2015 26 Jun 2015 30 Jun 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 25.25 Cumulative Contract Awards
ADB 25.25 15 Dec 2014 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 15 Dec 2014 0.00 0.00 0%

TA 8791-BHU

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Dec 2014 07 Jan 2015 07 Jan 2015 31 May 2017 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 0.00 0.00 0.00 0.00 1,000,000.00 15 Dec 2014 0.00

Evaluation Documents

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