𝐃𝐨𝐫𝐣𝐢𝐥𝐮𝐧𝐠 𝐇𝐲𝐝𝐫𝐨𝐩𝐨𝐰𝐞𝐫 𝐏𝐫𝐨𝐣𝐞𝐜𝐭 𝐒𝐞𝐜𝐮𝐫𝐞𝐬 $𝟖𝟏𝟓 𝐌𝐢𝐥𝐥𝐢𝐨𝐧 𝐈𝐧 𝐆𝐥𝐨𝐛𝐚𝐥 𝐅𝐮𝐧𝐝𝐢𝐧𝐠

… 𝒑𝒓𝒐𝒋𝒆𝒄𝒕 𝒆𝒙𝒑𝒆𝒄𝒕𝒆𝒅 𝒕𝒐 𝒈𝒆𝒏𝒆𝒓𝒂𝒕𝒆 𝒄𝒍𝒆𝒂𝒏 𝒆𝒍𝒆𝒄𝒕𝒓𝒊𝒄𝒊𝒕𝒚, 𝒄𝒓𝒆𝒂𝒕𝒆 𝒕𝒉𝒐𝒖𝒔𝒂𝒏𝒅𝒔 𝒐𝒇 𝒋𝒐𝒃𝒔, 𝒂𝒏𝒅 𝒃𝒐𝒐𝒔𝒕 𝒍𝒐𝒄𝒂𝒍 𝒄𝒐𝒎𝒎𝒖𝒏𝒊𝒕𝒊𝒆𝒔

By Yeshi Dolma

When villagers in Tsamang gewog speak about dust on their crops, blasting noises echoing across the valley, or newly widened roads cutting through forested slopes, they are describing the early tremors of one of the country’s largest infrastructure undertakings in decades.

On January 22, 2026, the World Bank Group’s Boards of Executive Directors approved a sweeping financing package for the 1,125-megawatt Dorjilung Hydroelectric Power Project on the Kurichhu River, an endorsement that places the project among the most significant internationally supported investments ever undertaken in Bhutan.

The approval is more than a technical milestone. By committing hundreds of millions of dollars in grants, concessional credits, and loans, the World Bank Group has sent a clear signal of confidence in Dorjilung’s design, governance structure, and long-term economic promise. For communities already seeing excavators arrive and labour camps take shape, the decision reinforces expectations that the project will deliver not only electricity but also jobs, income, and lasting development.

The financing package approved by the World Bank Group totals US$815 million, combining a $150 million grant and a $150 million credit from the International Development Association, a $15 million enclave loan from the International Bank for Reconstruction and Development to the government, and a further $200 million IBRD enclave loan together with a $300 million “A loan” from the International Finance Corporation to Dorjilung Hydro Power Limited.

In addition to this public financing, the structure is designed to mobilize about $900 million from private investors, taking the total funding envelope to a scale rarely seen for domestic infrastructure.

Senior officials framed the decision as transformational. Finance Minister Lyonpo Lekey Dorji said the project would “deliver clean electricity, spur economic growth and advance our carbon-negative commitment,” while emphasizing that the innovative financing model would prevent undue strain on public finances and preserve space for social spending.

World Bank Group Country Manager Xavier Furtado described Dorjilung as an example of how sovereign borrowing could be kept to a minimum while attracting private capital and balancing risks between public and private stakeholders, an approach he suggested could shape future hydropower development.

For readers, the specificity of the figures matters. The breakdown between grants, credits, and commercial-style loans, and the involvement of the World Bank’s three major institutions—IDA, IBRD, and IFC—illustrate that Dorjilung is not a speculative venture. It is a carefully structured, globally scrutinized project with substantial financial firepower behind it.

Central to that structure is Dorjilung Hydro Power Limited, a Special Purpose Vehicle jointly owned by Druk Green Power Corporation, which holds 60 percent, and India-based Tata Power, which owns the remaining 40 percent.

The arrangement marks the largest hydropower development in Bhutan to be undertaken as a public-private partnership rather than relying primarily on sovereign borrowing. Under the model, both partners will share equity and management responsibilities, and the company will operate under a 30-year concession agreement with the government.

Officials have stressed that majority ownership remains with the state utility, while the private partner brings technical and financial strength. The aim is to combine public oversight with commercial discipline, reducing fiscal exposure while opening the door to further private investment in the sector.

The World Bank Group’s role has extended beyond financing. It has provided technical support during preparation, including work on environmental and social safeguards, stakeholder engagement, biodiversity management, and climate-resilient design. A comprehensive suite of studies, ranging from environmental and social impact assessments to livelihood restoration plans and labour management procedures, has been prepared and publicly disclosed.

For citizens wary of large-scale projects burdening future budgets, the PPP model, coupled with the heavy presence of concessional financing, offers a different narrative: one of shared risk, international standards, and diversified funding sources rather than reliance on public debt alone.

At the national level, Dorjilung is projected to generate more than 4,500 gigawatt-hours of electricity each year, increasing overall energy production by 40 percent and exports by 42 percent. By producing surplus power in summer and monsoon months while easing winter shortages, the project is expected to eliminate costly seasonal imports and create new revenue streams that can be channelled into social programmes and other investments.

Yet the impact is already being felt much closer to the ground.

In Tsamang gewog, Mongar dzongkhag, Gup Sonam Phuntsho said authorities have held more than 15 consultation meetings with communities since mid-2023, anticipating that the area will be among those most affected by construction.

He acknowledged the disruption that accompanies early works, dust settling on crops, and noise from blasting, but pointed to immediate benefits. “More than 20 local labourers are already engaged on site,” he said, and skilled employment is expected to rise once the main contractor mobilises.

Kinzang Dego, a father of three, said the steady income from early construction has changed daily life. “I earn about Nu 800 a day now,” he said, explaining that the wages have helped him meet school expenses and reduced the need to migrate elsewhere for seasonal work.

Sonam Yoezer, the eldest in his family and the sole breadwinner, described the value of having employment close to home. Having studied only up to Class 8, he said he had worked on construction sites before, but the proximity of this project allows him to support his parents more easily.

“I can send more money home and help my family with their daily needs,” he said, adding that staying close gives him a sense of pride and responsibility.

Younger workers are also taking part. Choten Tshering, a college student, said the job has provided pocket money and opportunities to meet people from across several dzongkhags, building networks he believes will be useful in the future. He noted that road widening linked to the project has improved travel, and while winter dust can be challenging, water tankers are deployed to suppress it.

“Overall it’s a good experience,” he said.

According to project documents, Dorjilung is expected to create between 4,000 and 5,000 direct and indirect jobs each year during construction and operation, while stimulating demand for housing, transport, food supplies, and other local services. Agricultural producers are also expected to benefit from reliable markets created by the project’s daily need for fresh produce.

The weight of the World Bank approval lies not only in the headline number but in the precision with which the project has been framed.

Dorjilung is a run-of-river scheme with a 139.5-metre-high concrete gravity dam and a reservoir designed to provide three to eight hours of daily peaking power. A 14.97-kilometre headrace tunnel will feed an underground powerhouse housing six turbines of 187.5 MW each, returning all diverted water to the river through two tailrace tunnels.

Construction is concentrated in Mongar dzongkhag, with part of the reservoir extending into Lhuentse, and the project footprint covers about 918 acres, largely state reserve forest. Fifty-three households have been identified as directly affected by land acquisition, with only one requiring physical relocation. Compensation and livelihood restoration measures have been designed in line with national laws and World Bank standards, supported by a grievance redress mechanism accessible through multiple channels.

Environmental safeguards have been similarly detailed. Plans include designated spoil disposal sites, erosion-control structures, dust suppression systems, wastewater treatment facilities, and biodiversity management programmes to offset impacts on forest areas and ecological corridors. Blasting and tunnelling are governed by structural integrity assessments, vibration monitoring equipment, and strict explosive-management protocols.

For journalists and the public alike, such specificity provides credibility. The presence of international financiers, the disclosure of technical documents, and the articulation of risk-mitigation strategies elevate Dorjilung from a generic hydropower proposal to a closely monitored, high-stakes national investment.

The World Bank Board’s approval has placed Dorjilung firmly on the global map of major clean-energy projects. Its mix of grants, concessional finance, and private capital underlines the scale of ambition and the level of scrutiny applied to its design.

At the same time, the voices from Tsamang gewog and nearby communities reveal how that international backing is translating into immediate, tangible effects: wages in hand, roads widened, and young people choosing to stay rather than migrate.

As heavy machinery continues to carve access roads and tunnel portals into the hillsides above the Kurichhu, Dorjilung stands at the intersection of global finance and village livelihoods. The World Bank’s green light has strengthened confidence that the project has both the resources and the institutional architecture to deliver on its promises.

For now, dust clouds and drilling rigs are the most visible signs of change. But behind them lies a financing structure and partnership model that supporters argue could redefine how large infrastructure is built and paid for in the years ahead.