Druk Green Power Corporation (DGPC), in collaboration with experts from France and Italy, is currently updating the Detailed Project Report (DPR) for the Dorjilung Project. The Ministry of Energy and Natural Resources (MoENR) has emphasized the need for this update, citing the irrelevance of the initial DPR conducted in 2015.
Responding to National Assembly (NA) Member of Parliament, Karma Lhamo from Monggar constituency, Lyonpo Loknath Sharma of MoENR stated that the revision aims to align the DPR with the government’s updated guidelines and enhance its compatibility with international financial institutions, ensuring its bankability.
Meanwhile, the DPR is an extensive outline of a project with essential information such as the resources and tasks to be carried out in order to make the project successful.
The minister added that the completion of the DPR will require careful consideration, estimating a timeline of 8-9 months to address any potential future issues.
“To support the DPR consultation, the World Bank has provided funding of USD 4 million,” Lyonpo said.
The Dorjilung project is planned to generate 1,125 Megawatts (MW) of power on the Kurichhu, a major tributary of the Drangmechhu that flows into India.
Minister Loknath Sharma also highlighted the substantial cost of the project, estimated at Nu 119 bn, emphasizing the need to secure funding.
The Lyonpo revealed that preparations for project funding are already underway, with the Prime Minister’s current visit to Vienna seeking additional financial support.
According to the Minister, “Considering the project’s scale, multiple sources of funding will be necessary. The World Bank has committed USD 300 million to the project, although this amount falls short of the estimated total cost of USD 1.4 billion,”
“As a result, the project funding will involve consortium financing with the support of the World Bank.”
Meanwhile, consortium financing refers to several lending institutions that come together to jointly finance a single borrower. “To bridge the funding gap, discussions are ongoing with organizations such as the Asian Development Bank (ADB) and the Japan International Cooperation Agency (JICA) for consortium financing,” Lyonpo said.
Tshering Pelden from Thimphu
