fbpx 48489-003: South Asia Subregional Economic Cooperation Green Power Investment Program | Asian Development Bank

Bhutan: South Asia Subregional Economic Cooperation Green Power Investment Program

Sovereign (Public) Project | 48489-003 Status: Proposed

The proposed multitranche financing facility totaling of $320 million will support the development of run-of-river hydropower plant and transmission system facilities in the eastern region of Bhutan. The power generated from the plant can be supplied through the eastern grid network system for dual purposes of export and domestic consumption.

Project Details

Project Officer
Ogino, Kaoru South Asia Department Request for information
Country
  • Bhutan
Sector
  • Energy
 
Project Name South Asia Subregional Economic Cooperation Green Power Investment Program
Project Number 48489-003
Country Bhutan
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
MFF Facility Concept: South Asia Subregional Economic Cooperation Green Power Investment Program
Ordinary capital resources US$ 227.94 million
concessional ordinary capital resources lending / Asian Development Fund US$ 92.06 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Energy / Energy sector development and institutional reform

Gender Equity and Mainstreaming Some gender elements
Description The proposed multitranche financing facility totaling of $320 million will support the development of run-of-river hydropower plant and transmission system facilities in the eastern region of Bhutan. The power generated from the plant can be supplied through the eastern grid network system for dual purposes of export and domestic consumption.
Project Rationale and Linkage to Country/Regional Strategy

The proposed investment program is a multitranche financing facility (MFF) to support development of the Nyera Amari run-of-river hydropower plant and a transmission system. The power generated from the plant can be supplied through the eastern grid network system for dual purposes of export and domestic consumption. This approach will make a geographical balance in development support from the Asian Development Bank (ADB), following the Dagachhu hydropower plant (126 MW) in the western region, and the Nikachhu hydropower plant (118 MW) in the central region. While the eastern region has the highest population among the regions, it has been less developed in overall infrastructure, and is more likely to be poor than other regions. The government of Bhutan aims for balanced regional development, which is to ensure that inclusive development is equitably spread across the country.

The government regards its continued hydropower development as the country's economic key driver that will help maximize local, national, and regional development impacts. Hydropower generation contributes to one-fifth of the country's gross domestic product. Out of Bhutan's installed generation capacity (1,614 MW), about 75% is exported to India after meeting domestic electricity demand. The hydropower exports account for one-third of government revenue; they are primary source for government spending on socioeconomic development for social services such as health, education, and rural development. Hydropower development forms the foundation of the economy and social system in Bhutan.

Impact Cross-border power trading expanded.
Outcome Clean hydropower supply for power export and domestic consumption increased.
Outputs

(i) Hydropower plant's first stage constructed,

(ii) Eastern grid network strengthened, and

(iii) Hydropower plant's second stage constructed.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples Category C
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services It is unknown whether any project implementation consultants would be hired under this loan.
Procurement The Nyera Amari hydropower plant will be developed with two stages by a project's special purpose company to be established by DGPC. Therefore, DGPC is the executing agency, and the project company will be the implementing agency. For the transmission, BPC will be the executing and implementing agency. Procurement packages will come later.
Responsible ADB Officer Ogino, Kaoru
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Bhutan Power Corporation
PO Box 589
Thimpu, Bhutan
Druk Green Power Corporation
*
Bhutan
Timetable
Concept Clearance 03 Dec 2015
Fact Finding 31 Aug 2018 to 31 Aug 2018
MRM 05 Dec 2018
Approval -
Last Review Mission -
Last PDS Update 12 Sep 2017

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.